MA H1145

Establishes a regulatory framework for shared appreciation mortgages in Massachusetts, requiring programs to be approved by the Commissioner of Banks and limiting them to owner-occupied properties of 1-4 families

Caps the shared appreciation payment at the lesser of 15% of the appreciation value or 15% of the property's value at loan consummation, with appreciation calculated by state-certified appraisers and excluding mortgagor-funded improvements

Requires borrowers to receive counseling from a HUD-certified housing counselor at least 14 days before closing, with the mortgagee paying counseling costs, and mandates 21 business days advance notice with all loan documents

Prohibits prepayment penalties, mandatory arbitration clauses, confidentiality provisions, and restrictions on refinancing; allows surviving heirs living in the property to continue the loan rather than triggering immediate repayment

Violations render contracts void, constitute per se violations of Chapter 93A consumer protection law, and entitle mortgagors to actual damages and attorney fees; repeals Section 369 of Chapter 128 of the Acts of 2024