WeVote
Log In

Bill

Bill

S 731

Waives a registration fee for basic life support first response agencies

2025 Regular Session Introduced by Patrick Gallivan

Regulates shared appreciation mortgage loans for owner-occupied homes, capping the share of appreciation at 15%, mandating counseling/disclosures, and banning prepayment penalties.

REFERRED TO HEALTH
0
WeVote Research Nonpartisan
Bill Summary · S 731

Summary — S.731 (Introduced 2025)

Note: The public record for S.731 contains mixed and partly inconsistent metadata (alternate titles, sponsor lists, and fragments of unrelated bills). This summary focuses on the substantive bill text filed as Senate Docket No. 913 / Senate No. 731 (presented by Senator Lydia Edwards) which would add a new Section 17 to Chapter 167E of the Massachusetts General Laws and regulate “shared appreciation mortgage” loans.

Purpose

Establish a regulatory framework and consumer protections for shared appreciation mortgage (SAM) loans on owner-occupied residential property (dwellings with up to four families). The bill permits entities to originate or broker SAMs under an approved program and sets substantive limits, disclosure, counseling, servicing, and foreclosure-related rules.

Key definitions

  • Shared appreciation mortgage: a residential mortgage containing an agreement for the mortgagee to share in appreciation in the property upon specified triggering events (sale, maturity, transfer, etc.).
  • Shared appreciation payment: the amount the mortgagor must pay representing their share of appreciation.
  • Appreciation in value: positive difference between gross sales proceeds or appraised value at payoff and appraised value at original closing, minus actual cost of mortgagor improvements. Appraisals must be by a state-certified residential or general appraiser.

Major provisions and borrower protections

  • Cap on shared appreciation payment: the mortgage must limit the shared appreciation payment to the lesser of (a) 15% of the appreciation value, or (b) 15% of the property value at consummation (as determined by appraisal).
  • No prepayment penalty: loans cannot impose a penalty for satisfying or terminating the mortgage early.
  • No waiver of legal rights: loan terms may not restrict or waive the mortgagor’s substantive or procedural rights or remedies.
  • Refinancing and subordination: borrower may refinance at any time; mortgage holder must agree to subordinate the SAM upon request if the borrower qualifies to refinance the first-lien mortgage.
  • Assignments: purchasers/assignees of the obligation are subject to all claims and defenses the mortgagor could assert against the original mortgagee.
  • Prohibitions: confidentiality clauses and mandatory arbitration clauses are disallowed.
  • Death of borrower: loan does not automatically become due upon borrower’s death if heirs live in or intend to live in the property; heirs may continue payments until full maturity.

Counseling and disclosures

  • Mandatory pre-consummation counseling: a shared appreciation mortgage cannot be consummated less than 14 calendar days after the mortgagor obtains counseling from a HUD-certified housing counselor. The lender must pay the cost of counseling.
  • Advance written disclosure: at least 21 business days prior to consummation (and at least 3 days before scheduled counseling), mortgage holder must provide the borrower with all documents to be signed and a clear disclosure (format/content to be set by the Attorney General) including counseling information, the maximum dollar amount of the shared appreciation payment at maturity, payment timing, and other required items.

Foreclosure-related and reconveyance protections

  • For foreclosure-rescue or foreclosure-related transactions (940 CMR 25.01): APR for associated mortgage may not exceed the Average Prime Offer Rate (per federal rules).
  • If a transaction reconveys a mortgagor’s previously owned property (owned within prior three years), sale price to mortgagor must not exceed the lesser of (a) current market value (by state-certified appraisal) or (b) 25% above the price the seller paid.

Servicing (partial text)

  • Originator and successors/assigns must provide periodic statements to the borrower on the same schedule and to the same requirements as TILA mortgage statement rules (12 CFR §1026.41), even if not otherwise subject to federal TILA. (The bill’s servicing section is truncated in the available text; additional servicing requirements appear to follow.)

Who is affected

  • Primary: owner-occupant homeowners of 1–4 family residences considering or holding shared appreciation mortgages.
  • Secondary: lenders, loan originators, mortgage intermediaries, servicers, state-certified appraisers, HUD-certified housing counselors, and investors/assignees of SAMs.

Procedural status and timeline (as available)

  • Filed as Senate Docket No. 913 / Senate No. 731 (presented by Lydia Edwards).
  • Bill text proposes adding Section 17 to Chapter 167E (Massachusetts).
  • Committee referral entries in the record vary (Financial Services, Health); records show referral to the committee on Financial Services (2/27/2025). Additional hearing scheduling entries in the file appear inconsistent and may pertain to other items. The bill remains pending committee review.

Potential impacts

  • Strengthens consumer protections for homeowners using or offered shared appreciation mortgages (disclosure, counseling, capped equity share, no prepayment penalties).
  • May limit some financing structures and investor returns for SAMs due to the 15% cap and other restrictions, and increase compliance costs (counseling, appraisal, disclosure, TILA-like servicing rules).
  • Provides specific safeguards for vulnerable situations (foreclosure rescue, reconveyance to former owner, heirs remaining in property).

If you want, I can: (1) produce a plain-language one-page explainer for homeowners, (2) extract the bill’s requirements into a checklist for lenders, or (3) track and clarify committee status and hearing dates from the legislative portal.

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

Sign in to ask a question.