An Act to protect consumers by further defining subprime loans

HD 414, titled "An Act to protect consumers by further defining subprime loans," requires lenders to obtain a borrower's written opt-in and proof of approved counseling before offering variable-rate subprime mortgages to first-time homebuyers for owner-occupied single-family homes in Massachusetts. The law mandates that borrowers receive counseling from a HUD-approved or state-approved nonprofit organization before closing, and lenders must verify this at closing. If violated, the variable interest rate terms become unenforceable, and lenders can only collect the lower of the original or current interest rate for the loan's remaining term. Qualified Mortgages meeting federal standards (as of January 1, 2022) are exempt from these requirements.