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H 1110

An Act to protect consumers by further defining subprime loans

194th Legislature (2025-2026) Introduced by Tackey Chan

H 1110 refines Massachusetts subprime loan definitions to strengthen consumer protections against predatory lending practices affecting vulnerable borrowers.

Read second and ordered to a third reading
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Bill Summary · H 1110

Legislative bill overview

H 1110 proposes to strengthen consumer protections in Massachusetts by establishing clearer definitions and regulatory standards for subprime loans. The bill aims to prevent predatory lending practices by refining how subprime loans are classified and what terms constitute this category of high-risk borrowing.

Why is this important

Subprime loans often carry significantly higher interest rates and fees, disproportionately affecting lower-income borrowers and communities of color. Clear legal definitions enable regulators to enforce protections more effectively and help consumers identify when they're being offered problematic loan terms before signing agreements.

Potential points of contention

  • Lender concerns: Financial institutions may argue that stricter definitions increase compliance costs and could reduce credit availability to borrowers with lower credit scores who have limited lending options
  • Definition scope: Stakeholders may dispute what specific loan characteristics should trigger subprime classification—interest rate thresholds, credit score requirements, or other metrics—affecting different lending products
  • Enforcement mechanisms: The bill's effectiveness depends on adequate regulatory resources and clear penalties, which could create disagreements over implementation costs and agency authority

Compiled from official sources — confirm details with the bill’s official record.

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