Massachusetts Regulates Shared Appreciation Mortgages
The state attorney general's final rule sets disclosure and liability terms for shared appreciation mortgages tied to future home price gains.
Updated on Nov. 6, 2026 in Residential
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The Massachusetts Attorney General issued a final rule on shared appreciation mortgages, which give lenders a share of future home value increases in exchange for funding. The regulation stems from a November 2024 state economic development bill that waived certain consumer protection liability for nonprofit lenders.
Why it matters
Advocates say the 2024 legislative change created a loophole that exposed distressed homeowners to complex and costly loan structures. The regulation now defines the narrow circumstances under which these lenders can be shielded from state consumer protection claims.
The 2024 state statute carved out a broad waiver of liability under Massachusetts consumer protection laws for certain nonprofit shared appreciation mortgage lenders, including loans originated by BlueHub Capital. The final rule sets out the limited circumstances in which those lenders can be insulated from such claims.
The players
Andrea Joy Campbell
Andrea Joy Campbell is the Massachusetts Attorney General whose office issued the final shared appreciation mortgage rule and has challenged Hometap for alleged consumer protection violations.
BlueHub Capital
BlueHub Capital is a nonprofit lender whose shared appreciation mortgage loans are covered by the state liability waiver and which was found liable in Humes v. BlueHub Capital Inc. for violating multiple state lending laws.
Hometap
Hometap is a home equity investment provider that Massachusetts Attorney General Andrea Joy Campbell has challenged over alleged consumer protection violations.
National Consumer Law Center
The National Consumer Law Center is a nonprofit advocacy organization that urged additional state action on home equity investment products.
The details
Under the BlueHub-style model, borrowers receive a fixed-rate first mortgage alongside a second lien that requires them to share a portion of any home value increase with the lender upon sale, transfer or refinance. The payoff is variable and not fixed in dollars at origination, and the regulation establishes disclosure requirements including clear presentation of the maximum possible repayment obligation.
Timeline
November 2024: State economic development bill with the shared appreciation mortgage liability waiver passed.
Last year: Ninth Circuit overturned the Unison home equity investment ruling in Washington state.
Earlier this year: Illinois passed a legal framework for home equity regulation.
Last month: Point executives discussed universal regulation at an MBA convention.
August: Unlock settled with the Minnesota Attorney General over home equity agreement allegations.
Reality Check
The regulation follows the 2024 Massachusetts economic development bill waiver and sits alongside the Ninth Circuit's reversal of the Unison home equity investment ruling in Washington state. Together these actions define the legal boundaries for home equity investment products nationwide.
Massachusetts homeowners considering a shared appreciation mortgage will face variable repayment obligations tied to future home value gains. The disclosure requirements in the new rule are designed to show the maximum possible payoff before a loan is signed.
The takeaway
Before signing a shared appreciation mortgage, homeowners should review the maximum possible repayment amount in the disclosures, since the payoff depends on future home price gains rather than a fixed dollar figure.
Further reading
Explore more Residential real estate coverage affecting Massachusetts homeowners.
Source note: This article includes information reported by HousingWire.
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