HB5231 Summary

• Adds definition of "shared appreciation agreement" to the Residential Mortgage License Act, covering transactions where consumers receive money or value in exchange for an interest in a dwelling or residential real estate.

• Requires mandatory counseling for borrowers before taking legally binding action on a shared appreciation agreement, with no waiver permitted.

• Authorizes the Secretary of the Department of Financial and Professional Regulation to adopt rules governing shared appreciation agreements, including disclosures on costs, duration, fees, potential alternatives, and interest rate limits.

• Modifies counseling requirements in the Residential Real Property Disclosure Act to allow remote electronic or telephonic counseling (with borrower permission and identity verification) in addition to in-person counseling.

• Changes the definition of "exempt person or entity" in the predatory lending database program to reference only subsection (d) of Section 1-4 rather than subsections (d)(1), (d)(1.5), and (d)(1.8).