Maine passed a bill enacting shared appreciation mortgage requirements under the Maine Consumer Credit Code. Under the bill, a supervised lender and/or servicer (as applicable):
- May not charge a prepayment fee or penalty under the terms of or included in the loan documents of a shared appreciation mortgage loan;
- Must disclose to the borrower prior to consummation of a shared appreciation mortgage loan the annualized cost, equity share payment amount, settlement payment amount, and annual percentage rate for each year of the term of the shared appreciation mortgage loan based on a real estate appreciation index prescribed by the Department of Professional and Financial Regulation, Bureau of Consumer Credit;
- Must provide to the borrower at least 90 days’ advance written notice of any action required by the borrower under the terms of the shared appreciation mortgage loan that, if not timely taken by the borrower, will affect the rights or interests of the borrower;
- May not prevent the borrower from refinancing an existing senior mortgage or lien through a conventional or agency so-called rate-and-term refinancing as long as the principal balance on the new mortgage loan does not exceed the unpaid principal balance of the mortgage loan being refinanced plus customary and reasonable transaction costs. The shared appreciation mortgage loan lender must agree to subordinate its interest in connection with the rate-and-term refinancing;
- Must provide a periodic statement to the borrower that provides specific information regarding the account, including the outstanding principal balance and any applicable interest rate changes, and any delinquency information; and
- Must respond to a request for information regarding the process for a final termination or settlement of the shared appreciation mortgage loan within 7 business days following receipt of such a request from a borrower and the response must include a detailed and accurate written statement of the payoff or settlement process.
In addition, the definition of high-cost loan and consumer loan was amended to include shared appreciation mortgage loans and the definition of higher-priced mortgage loans was amended to exclude shared appreciation mortgage loans.
The bill went into effect April 13, 2026. It is noted that any shared appreciation mortgage product entered into with a consumer that is secured by a dwelling or residential real estate in this Maine between October 29, 2025 and April 13, 2026 that does not comply with the provisions of that ruling is void and unenforceable.
Click to view the ME HB 1272: https://www.tenaco.com/wp-content/uploads/2026/04/ME-HB-1272-04-15-26.pdf
