MA Amends Law Regarding Certain Shared Appreciation Mortgages

Massachusetts recently amended its law to, among other things, include provisions specific to shared appreciation mortgages made by certain nonprofit entities.  The new provisions state that if a written disclosure is provided to the borrower in advance of closing, as required, the nonprofit entity and the party making, lending, granting, or holding the mortgage shall not be liable for monetary relief, injunctive relief, or other equitable relief at common law or by statute for the terms of the mortgage.  The new provisions detail required and optional model language for the written notice.

Shared appreciation mortgages provided under this part of the law are allowed only when the prior mortgage is at least 90 days delinquent, and the shared appreciation mortgage reduces the prior delinquent mortgage loan principal owed at the time the new mortgage is made.

The provisions currently are effective.

Maryland also recently amended its law to include provisions regarding shared appreciation mortgages, WBK’s coverage can be found here.