HB 5141 Summary

• Requires mortgage lenders offering shared appreciation agreements to provide written disclosures to prospective borrowers within three business days of receiving an application

• Mandates disclosure of a clear warning statement in at least 12-point font explaining that the borrower is not required to complete the agreement, could lose their home if obligations are not met, and should consider consulting an attorney

• Requires lenders to disclose financial information including transaction details, fair market value determination methods, interest rates, lender's equity share limits, tax implications, and an APR calculation

• Mandates repayment examples based on 5-year, 10-year, 15-year, and 30-year terms under four market value scenarios: no change, 10% annual depreciation, 3.5% annual appreciation, 5.5% annual appreciation, and actual state average rates

• Takes effect October 1, 2024