MaineLD 1901132nd Maine Legislature (2025-2026)HouseWALLET

An Act to Regulate Shared Appreciation Agreements Relating to Residential Property

Sponsored By: Arthur Bell (Democratic)

Signed by Governor

REAL ESTATEREAL ESTATE - COOPERATIVES

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 6 benefits, 0 costs, 1 mixed.

Fair terms, payoff rights, and no junk fees

The law bans unfair terms in shared‑appreciation loans. No prepayment penalties, forced arbitration, rent bans, or changes to the settlement formula after you sign. You get periodic statements and a written payoff within seven business days of request. You can cancel within three business days after closing. Lenders may accelerate only for fraud, payment default, or actions that harm their security. You may rent your home and do a rate‑and‑term refinance under listed limits, and the lender must subordinate when rules are met.

Mandatory counseling and clear pre‑signing disclosures

Before a lender can make a shared‑appreciation loan, a certified counselor must review your needs, eligibility, costs, duties after closing, and alternatives. The counselor must issue a certificate. The lender must also give state‑required pre‑signing disclosures that explain key features, costs, and terms.

Strong enforcement and right to void deals

Breaking these shared‑appreciation rules is a per se consumer‑law violation. If you lacked independent counsel, the loan is presumed unconscionable or unfair unless the lender rebuts it. Courts can refuse to enforce the loan, order rescission, and award your attorney’s fees. Any noncompliant shared‑appreciation contracts made between October 29, 2025 and this Act’s effective date are void and unenforceable.

Shared appreciation loans now regulated as mortgages

The law treats shared‑appreciation home deals as consumer loans and as residential mortgages. Lenders and servicers are now “creditors” and must be licensed and supervised. More mortgages are covered, not just first‑lien loans. The law defines what a shared‑appreciation mortgage is and who counts as a lender. The state will write rules on cost methods, equity‑share limits, valuation models, counseling, and required disclosures.

Standard cost and payoff terms to compare

The law standardizes key cost terms so you can compare offers. It defines the payment amount, the settlement versus equity‑share amounts, and the equity‑share and payment‑amount percentages. It defines “term days” for timing. It sets an annualized‑cost formula to show a yearly percent, and counts equity‑share payments as part of the finance charge in disclosures.

Stronger appraisal and valuation standards

Payoff amounts must be based on an appraisal at settlement. Appraisals must follow federal independence rules. If an automated valuation model is used, it must meet CFPB quality‑control standards (effective Oct 1, 2025) or state rules. The settlement payment excludes lender advances for taxes, insurance, and similar home costs.

High‑cost and higher‑priced rules for shared‑appreciation loans

A shared‑appreciation loan counts as a high‑cost mortgage when its points and fees meet set thresholds. High‑cost status brings extra borrower protections. The law also excludes these loans from one nontraditional category inside higher‑priced mortgage rules. Your exact status depends on the federal thresholds that apply to your loan.

Sponsors & Cosponsors

Sponsor

  • Arthur Bell

    Democratic • House

Cosponsors

  • Denise Tepler

    Democratic • Senate

  • Dylan Pugh

    Democratic • House

  • Eleanor Sato

    Democratic • House

  • Poppy Arford

    Democratic • House

  • William Bridgeo

    Democratic • House

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Signed by Governor, ACTPUB Chapter 653

    4/13/2026
  2. PASSED TO BE ENACTED - Emergency - 2/3 Elected Required, in concurrence.

    4/7/2026Senate
  3. This being an emergency measure, a two-thirds vote of all the members elected to the House was necessary.PASSED TO BE ENACTED.Sent for concurrence. ORDERED SENT FORTHWITH.

    4/7/2026House
  4. Reports READ Senator BAILEY of York moved to ACCEPT The Majority Ought to Pass As Amended by Committee Amendment "A" (H-952) Report in concurrence. On motion by Senator STEWART of Aroostook Tabled until Later in Today's Session, pending Motion by Senator BAILEY of York to ACCEPT The Majority Ought to Pass As Amended by Committee Amendment "A" (H-952) in concurrence. Taken from the table by the President Subsequently, the Senate ACCEPTED The Majority Ought to Pass As Amended by Committee Amendment "A" (H-952) Report. READ ONCE Committee Amendment "A" (H-952) READ and ADOPTED Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-952) in concurrence Ordered sent down forthwith.

    4/6/2026Senate
  5. Reports READ.On motion of Representative MATHIESON of Kittery, the Majority Ought to Pass as Amended Report was ACCEPTED.The Bill was READ ONCE.Committee Amendment "A" (H-952) was READ and ADOPTED.Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-952). Sent for concurrence. ORDERED SENT FORTHWITH.

    4/2/2026House
  6. Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.

    6/25/2025House
  7. Received by the Clerk of the House on May 1, 2025.The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.

    5/1/2025House

Bill Text

  • Amendment C-A (H-952), adopted by House & Senate

  • Enacted

  • Introduced

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