An Act regulating certain mortgages

This bill amends Massachusetts law to allow banks to offer shared appreciation mortgage loans to homeowners of small residential properties, provided the owner lives in the home. Under this program, lenders would trade a lower interest rate or smaller loan amount for a share of the property's value increase if it is sold in the future. The legislation sets specific limits, capping the lender's share of the appreciation at 25 percent and restricting the loan term to a maximum of 10 years. Additionally, the bill requires that property value changes be calculated using appraisals from state-certified professionals and mandates that the state commissioner create rules to oversee these loans.