Massachusetts Sets New Shared Appreciation Mortgage Rules

Homeowners weighing a SAM should review the maximum repayment disclosure before signing any agreement.

Updated on Nov. 6, 2026 in Residential

Gouache-painted editorial illustration of a pitched-roof house balanced against a smaller house on a wooden fulcrum, set in muted ochre, rose, and sage tones. — Massachusetts' attorney general finalized rules on shared appreciation mortgages, which let lenders share future home-value gains with borrowers and limit state consumer-protection claims against them. AI Illustration. Upload story photo >

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Massachusetts' Attorney General has issued a final rule governing shared appreciation mortgages, a home-financing product in which homeowners share a portion of future home-value gains with the lender. The rule spells out the narrow circumstances in which a SAM lender can be shielded from claims under state consumer protection law, a shield created by a November 2024 economic development bill.

Why it matters

Shared appreciation mortgages can lower monthly costs for homeowners who need cash now, but the eventual payoff depends on future home prices and is not fixed in dollars at origination. Advocates argue the 2024 legislative change created a loophole that left distressed homeowners exposed to complex, costly loan structures, which is why the rule matters for anyone weighing a home equity product.

The rule follows a November 2024 economic development bill that gave certain nonprofit SAM lenders a broad waiver from Massachusetts consumer protection liability, including loans from BlueHub Capital. The regulation sets the limited conditions under which that insulation applies.

The players

Massachusetts Attorney General Andrea Joy Campbell

The state's chief consumer-protection official, who issued the final SAM rule and has challenged HEI provider Hometap over alleged consumer protection violations.

BlueHub Capital

A nonprofit lender whose SAM loans are covered by the state's liability waiver and which a court found liable for violating multiple state lending laws in Humes v. BlueHub Capital Inc.

Hometap

A home equity investment provider that the Massachusetts Attorney General has challenged over alleged consumer protection violations.

National Consumer Law Center

A consumer advocacy organization that has urged additional state action on home equity investment products.

The details

Under the BlueHub-style model, a borrower receives a fixed-rate first mortgage plus a second lien that requires sharing a portion of any increase in property value when the home is sold, transferred or refinanced. The regulation establishes disclosure requirements, including a clear presentation of the maximum possible repayment obligation. Borrowers can still face unexpectedly large balloon payments when they try to exit the loan, which is the risk the disclosure rules are meant to surface.

November 2024: State economic development bill with the SAM liability waiver passed.
Last year: Ninth Circuit overturned the Unison HEI 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.

The Home Front

The rule places Massachusetts among states such as Illinois, which recently passed its own home equity regulation framework, and follows a Ninth Circuit reversal of a Unison HEI ruling in Washington state. Together these moves show states moving to define rules for home equity investment products that have grown outside traditional mortgage regulation.

If you are considering a home equity product, ask the lender to show the maximum possible repayment amount in writing before you sign. Consult a licensed attorney or housing counselor before entering any shared appreciation arrangement, because the final payoff depends on future prices.

The takeaway

Shared appreciation mortgages trade today's monthly relief for a share of future home-value gains, and that share can grow large if you sell or refinance. Before you commit, request the maximum possible repayment figure in writing and have a licensed housing counselor or attorney review it.