MA H1110

Prohibits lenders from issuing variable or adjustable rate subprime loans to first-time home buyers on owner-occupied 1-4 family residential properties unless the borrower affirmatively opts in writing and completes counseling from an approved third-party nonprofit organization

Counseling organizations must be approved by HUD, a Massachusetts housing financing agency, the Massachusetts Homeownership Collaborative, or the mortgagee's regulatory agency

Commissioner of the Division of Banks must maintain a list of approved counseling programs and lenders must obtain evidence of completed counseling before closing

Violations render the variable/adjustable rate terms unenforceable, limiting the lender to collecting the lesser of the original interest rate (including any discounted rate) or the current adjusted rate for the loan's remaining term

Qualified Mortgages meeting federal specifications under 12 CFR 1026.43(e)(1)(i) are exempt from these requirements as of January 1, 2022