MA S731

Establishes a regulatory framework for shared appreciation mortgages in Massachusetts, requiring Commissioner of Banks approval for loan programs and limiting eligibility to owner-occupied residential properties of 1-4 units

Caps the shared appreciation payment at the lesser of 15% of the appreciation value or 15% of the property's value at loan origination, with appreciation calculated by state-certified appraisers minus any homeowner improvements

Mandates HUD-certified housing counseling at least 14 days before loan closing, with the mortgagee paying counseling costs and providing all loan documents at least 21 business days before consummation

Prohibits prepayment penalties, mandatory arbitration clauses, confidentiality provisions, and restrictions on refinancing; requires mortgage holders to subordinate the loan if borrowers qualify to refinance their first mortgage

Declares violations void the contract as a per se violation of Chapter 93A consumer protection law, entitling borrowers to actual damages and attorney fees, with the Attorney General authorized to enforce regulations and recommend license revocation