MA H1106

Creates new Chapter 255G establishing a licensing and regulatory framework for "shared equity investments," defined as non-recourse transactions where an investor provides money to a homeowner in exchange for an equity interest in residential property or a future payment obligation upon certain conditions

Requires shared equity investors to obtain a license from the Commissioner of Banks, with exemptions for banks, credit unions, government entities, those making 12 or fewer investments per year, and employees acting under a licensed investor's direction

Caps the annualized cost of shared equity investments at 20% and requires homeowners to retain at least 10% beginning home equity (except for home purchase transactions)

Mandates disclosure requirements including investment terms, settlement examples at various time intervals (3, 5, 10, 15, and 30 years) under multiple appreciation/depreciation scenarios, and a clear warning that a lien will be placed on the property

Establishes penalties of up to $5,000 per violation ($100,000 maximum) for licensees, criminal penalties up to $2,000 fine and/or 5 years imprisonment for unlicensed activity, and grants the Commissioner authority to suspend/revoke licenses, issue cease and desist orders, and conduct compliance examinations