Bill > LD1901

This bill establishes regulations for shared appreciation mortgage loans, which are a new type of financing where a borrower receives money in exchange for giving a lender a share of the future increase in the value of their home. The bill defines "shared appreciation mortgage loan" and "shared appreciation mortgage loan lender," and clarifies that these loans are considered "consumer loans" and "residential mortgage loans" under the Maine Consumer Credit Code. It directs the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection, to enforce these provisions and outlines specific restrictions and requirements for these loans, including rules on renting the property, refinancing existing mortgages, settlement payment calculations, arbitration, confidentiality, loan term extensions, prepayment penalties, demand features, assignee liability, and property valuation. The bill also mandates borrower counseling and a 3-day right of rescission, and creates a presumption of unconscionability if the borrower was not represented by independent legal counsel. Furthermore, it makes shared appreciation mortgage products subject to the Maine Consumer Credit Code retroactively to October 29, 2025, and any non-compliant products entered into between that date and the bill's effective date are void. The bill also requires a report to the Legislature by February 1, 2029, on the regulation of these loans.

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https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1901&snum=132