S 3179

SENATE . . . . . . . . . . . . . . No. 3179
  The Commonwealth of Massachusetts
  _______________
  In the One Hundred and Ninety-Fourth General Court
  (2025-2026)
  _______________
  SENATE, July 22, 2026.
  The committee on Financial Services to whom was referred the petition (accompanied by
bill, Senate, No. 705) of John J. Cronin for legislation to require a shared equity investor to have
a license with respect to residential property, report the accompanying bill (Senate, No. 3179).
  For the committee,
  Paul R. Feeney
  FILED ON: 7/10/2026
 SENATE . . . . . . . . . . . . . . No. 3179
  The Commonwealth of Massachusetts
  _______________
  In the One Hundred and Ninety-Fourth General Court
  (2025-2026)
  _______________
     An Act relative to home investments.
  Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
     of the same, as follows:
1SECTION 1: The General Laws are hereby amended by inserting after chapter 255F the
2 following new chapter:-
3Chapter 255G: Shared Equity Investments
4Section 1: Definitions
5Section 1. As used in this chapter the following words shall, unless the context otherwise
6 requires, have the following meanings:-
7"Agreed home value" means the value of the residential property at the time of
8 origination, as agreed to by both the homeowner and the shared equity investor and does not
9 include any discount or risk adjustment.
10"Annualized cost" means the annualized cost of a shared equity investment, expressed as
11 a percentage and calculated as follows: (((settlement payment / investment amount)^(365 / term
12 days))-1).
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13“Beginning home equity" means the unencumbered equity in a homeowner's residential
14 property after the shared equity investment is consummated, expressed as a percentage and
15 calculated as follows: (1-((senior secured debt + investment amount)/ agreed home value)).
16“Commissioner” means the Massachusetts commissioner of banks.
17“Control Person” means each member, director, principal officer, and office manager,
18 controlling shareholder owning, directly or indirectly, at least twenty-five (25%) of a legal entity,
19 and any other person with the authority to direct the management of the legal entity.
20“Instrumentality created by the United States or any state” means a federal, state,
21 municipal government, quasi-governmental entity or a nonprofit agency or corporation
22 incorporated under the laws of the commonwealth that has a tax exempt status granted under the
23 provisions of section 501(c)(3) of the federal Internal Revenue Code, which exclusively makes
24 home equity investments on residential property to be financed with public funds, or negotiates,
25 places, assists in the placement of, finds, or offers to negotiate, place, assist in the placement of
26 or find home equity investments on residential property to be financed with public funds only
27 under a contract with a federal, state, or municipal government, any instrumentality thereof or
28 any quasi-governmental entity as determined by the Commissioner. The making of a home
29 equity investment shall include being named as the investor on the investment agreement or
30 other investment documents.
31“Homeowner” means the owner of the property that applies for or enters into a shared
32 equity investment.
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33"Investment amount" means the gross proceeds of a shared equity investment that is
34 provided to the homeowner, before any deduction of third-party fees or amounts charged by the
35 shared equity investor.
36“Multi-state licensing system” means a system involving 1 or more states, the District of
37 Columbia, or the Commonwealth of Puerto Rico for the sharing of regulatory information and
38 the licensing and application processes, by electronic or other means, for home equity investors.
39“Residential property” means real property located in the commonwealth containing a
40 dwelling house with accommodations for four or less separate households and occupied in whole
41 or in part by either the homeowner who obtained the shared equity investment, or a renter who
42 pays rent directly to the homeowner.
43"Senior secured debt" means any obligation secured by a lien on the residential property
44 that would be senior to the lien securing obligations under the shared equity investment after
45 application of any proceeds from the shared equity investment at closing to reduce the amount of
46 any such senior obligations.
47"Settle" or "settlement" means the process by which a homeowner terminates a shared
48 equity investment, as set out in the terms of the shared equity investment.
49"Settlement payment" means the dollar amount that the homeowner will pay to settle a
50 shared equity investment, excluding any amounts paid by the homeowner pursuant to the terms
51 of the shared equity investment as (i) reimbursement for payments made on behalf of the
52 homeowner, (ii) administrative fees charged to the homeowner during the term of the shared
53 equity investment, or (iii) interest required that is not otherwise prohibited by law.
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54“Shared equity investment” means a non-recourse transaction whereby a shared equity
55 investor grants an outright sum of money to a homeowner in exchange for an equity interest in
56 the homeowner’s residential property or a future obligation to pay a sum upon the occurrence of
57 one or more conditions subsequent.
58“Shared equity investor” means any person or legal entity engaged in the business of
59 making or servicing shared equity investments. The term shall not include: (i) a shared equity
60 investment holder; or (ii) a person or entity that purchases or invests solely in an interest in real
61 estate other than a shared equity investment.
62"Shared equity investment application" means the submission of a homeowner's financial
63 and property information for purposes of entering a shared equity investment.
64"Shared equity investment holder" means a person or entity that purchases and passively
65 holds a pre-existing shared equity investment, or interest therein, which is serviced by a third-
66 party shared equity investor who is licensed under this chapter.
67"Term days" means the exact number of days that passed between the date on which the
68 investment amount is disbursed to the homeowner and the settlement date of the shared equity
69 investment.
70Section 2: Shared equity investor license requirement; exempted entities
71(a) License Required. No person shall act as a shared equity investor with respect to
72 residential property unless first obtaining a license from the Commissioner.
73(b) Exemptions. The following persons shall be exempt from the requirements of this
74 chapter:
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75(i) any person who is employed by or associated with a licensed shared equity investor
76 and acting under the direction of said licensed shared equity investor shall not be required to
77 obtain such license.
78(ii) any shared equity investor making twelve or fewer shared equity investments within
79 any period of twelve consecutive months; provided, however, that in computing the number of
80 shared equity investments, there shall be counted in the shared equity investments of more than
81 one partnership, association, trust or corporation, the majority interest of which are owned or
82 controlled directly or indirectly by the same person or persons, partnerships, associations, trusts
83 or corporations and including in the loans of a partnership or company not incorporated the loans
84 of the several members thereof.
85(iii) a bank as defined in section one of chapter one hundred and sixty-seven, a national
86 banking association, a federally chartered credit union, a federal savings and loan association, a
87 federal savings bank, or any subsidiary or affiliate of the above, insurance company, or to any
88 bank, trust company, savings bank, savings and loan association, credit union or insurance
89 company organized under the laws of any other state; provided, however, that except as provided
90 herein, such provisions shall apply to any subsidiary or affiliate, as defined by the
91 Commissioner, of any such exempted entity and of a bank holding company established in
92 accordance with state or federal law;
93(iv) any instrumentality created by the United States or any state or to any nonprofit,
94 public or independent post-secondary educational institution within the commonwealth
95 authorized by law to grant degrees by the commonwealth, or by any agency or instrumentality
96 thereof, for shared equity investments made by any such educational institution to its faculty or
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97 staff, or to any charitable organization originally created by a last will and testament before
98 January first, nineteen hundred and fifty which makes no more than twelve shared equity
99 investments during a twelve month period;
100(v) a real estate broker or real estate salesman as defined in section eighty-seven PP of
101 chapter one hundred and twelve who, in connection with services performed in a prospective real
102 estate transaction, provides shared equity investment information or assistance to a buyer if such
103 real estate broker or real estate salesman is not compensated for the same in addition to the
104 compensation received from the seller for such real estate services.
105Section 3: License application; multi-state licensing system
106The application for a license shall be in a form prescribed by the Commissioner. Such
107 application shall include the name and addresses where the business of the applicant is located,
108 and if the applicant is a legal entity, the names and addresses of each Control Person. The
109 Commissioner may require a background investigation of each applicant for a shared equity
110 investment license, and each Control Person of an applicant, by means of fingerprint checks by
111 the department of criminal justice information services pursuant to section 172 of chapter 6, and
112 the Federal Bureau of Investigation for state and national criminal history record checks. Receipt
113 of criminal history record information by a private entity shall be prohibited. Each application
114 for a license shall be accompanied by an investigation fee. Investigation and license fees shall be
115 determined annually by the Commissioner of administration under section 3B of chapter 7.
116The Commissioner may participate in a multi-state licensing system for shared equity
117 investors. The Commissioner may establish requirements for participation by an applicant in a
118 multi-state licensing system which may vary from the provisions set out in sections 3 and 5. The
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119 applicant shall pay directly to such multi-state licensing system any additional fee relating to
120 participation in such multi-state licensing system. The Commissioner shall ensure that the multi-
121 state licensing system adopts appropriate privacy, data security and security breach notification
122 policies. Upon written request, the Commissioner shall make available within 30 days, a copy of
123 the contract between the division and the multi-state licensing system that satisfies this section.
124Section 4: Issuance of license by Commissioner; notice of license denial; appeal
125Upon the filing of an application for a license, if the Commissioner finds that the
126 financial responsibility, character, reputation, integrity and general fitness of the applicant, and
127 of the partners or members thereof if the applicant is a partnership or association, and of the
128 officers, directors and principal employees if the applicant is a corporation, are such as to
129 warrant belief that the business will be operated honestly, fairly, soundly and efficiently in the
130 public interest consistent with the purposes of this chapter, he shall thereupon issue the applicant
131 a license to engage in the business of a shared equity investor. If the Commissioner shall not so
132 find, he shall not issue a license and he shall notify the applicant of the denial. Within twenty
133 days thereafter, he shall enter upon his records a written decision and findings containing the
134 reasons supporting the denial and shall forthwith give written notice thereof by registered mail to
135 the applicant. Within thirty days after the date of such notice, the applicant may appeal from such
136 denial to the superior court for Suffolk county, sitting in equity. The court shall hear all pertinent
137 evidence and determine the facts and upon the facts as so determined, review said denial and, as
138 justice and equity may require, affirm the same or order the Commissioner to issue such license.
139 The Commissioner shall approve or deny every application for a license within ninety days after
140 the filing thereof, but any failure of the Commissioner to act within such period shall not be
141 deemed to be an approval of any such application.
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142Section 5: Information on license; changes; notice requirements
143Each license shall state the address at which the business is to be conducted and shall
144 state the name of the licensee. Business shall at all times be conducted in the name of the
145 licensee as it appears on the license. A copy of such license or license number shall be posted on
146 the licensee’s website.
147Such license shall not be transferable or assignable and shall expire annually on a date
148 determined by the Commissioner.
149Any change of location or closing of a place of business of the licensee, either at the
150 address stated on the license or at a place other than said address stated on the license, shall
151 require prior written notice thereof to the Commissioner. Such notice shall be in writing setting
152 forth the reason therefor and shall be filed with the Commissioner at least thirty days prior to any
153 such relocation or closing.
154If there shall be any change among the Control Persons of any licensee, the licensee shall
155 notify the Commissioner in a timely manner of the name, address and occupation of each new
156 member, officer, partner or director, and provide such other information as the Commissioner
157 may require.
158Section 6: License suspension or revocation; notice and hearing
159The Commissioner may suspend or revoke any license issued pursuant to this chapter if
160 said Commissioner finds that:
161(i) the licensee has violated any provision of this chapter or any rule or regulation
162 adopted hereunder, or any other law applicable to the conduct of its business; or
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163(ii) any fact or condition exists which, if it had existed at the time of the original
164 application for such license, would have warranted the Commissioner in refusing to issue such
165 license.
166Except as provided in section seven, no license shall be revoked or suspended except
167 after notice and a hearing thereon pursuant to chapter thirty A.
168A licensee may surrender a license by delivering to the Commissioner written notice that
169 it thereby surrenders such license, but such surrender shall not affect the civil or criminal liability
170 of the licensee for acts committed before such surrender.
171No revocation, suspension or surrender of any license shall impair or affect the obligation
172 of any pre-existing lawful contract between the licensee and any person.
173Section 7: Commissioner’s order to cease and desist from unlawful act or practice; prior
174 notice and opportunity for hearing; temporary order
175(a) If the Commissioner determines, after giving notice of and opportunity for a hearing,
176 that a licensee has engaged in or is about to engage in an act or practice constituting a violation
177 of a provision of this chapter or a rule, regulation or order hereunder, he may order such licensee
178 to cease and desist from such unlawful act or practice and take such affirmative action as in his
179 judgment will effect the purposes of this chapter.
180(b) If the Commissioner makes written findings of fact that the public interest will be
181 irreparably harmed by delay in issuing an order under subsection (a) he may issue a temporary
182 cease and desist order. Upon the entry of a temporary cease and desist order, the Commissioner
183 shall promptly notify, in writing, the licensee affected thereby that such order has been so
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184 entered, the reasons therefor, and that within twenty days after the receipt of a written request
185 from such licensee, the matter will be scheduled for hearing to determine whether or not such
186 temporary order shall become permanent and final. If no such hearing is requested and none is
187 ordered by the Commissioner, the order shall remain in effect until it is modified or vacated by
188 the Commissioner. If a hearing is requested or ordered, the Commissioner, after giving notice of
189 and opportunity for a hearing to the licensee subject to said order, shall, by written finding of
190 facts and conclusions of law, vacate, modify or make permanent the order.
191(c) No order under this section, except an order issued pursuant to subsection (b), may be
192 entered without prior notice of and opportunity for a hearing. The Commissioner may vacate or
193 modify an order under this section upon finding that the conditions which required such an order
194 have changed and that it is in the public interest to so vacate or modify.
195Any order issued pursuant to this section shall be subject to review as provided in chapter
196 thirty A.
197Section 8: Annual report; examination of business records
198(a) Annual Report. Each licensee shall annually, on or before a date determined by the
199 Commissioner, file a report with the Commissioner containing such information as said
200 Commissioner may require concerning the business and operations conducted by the licensee in
201 the commonwealth during the preceding calendar year.
202(b) Recordkeeping. A licensee shall keep and use such business records in such form and
203 at such location as said Commissioner shall, by regulation, determine, which shall enable said
204 Commissioner to determine whether such licensee is complying with the provisions of this
205 chapter and any rules or regulations promulgated hereunder by said Commissioner and any other
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206 law, rule or regulation applicable to the conduct of the business for which it is licensed under this
207 chapter. Nothing in this section shall be construed to permit any such licensee to destroy original
208 records or documents. Each such licensee shall preserve all such business records for a minimum
209 of three (3) years, or such longer period as the Commissioner may prescribe by regulation.
210 Notwithstanding the provisions of any general or special law or the Massachusetts Rules of Civil
211 Procedure to the contrary, service of a subpoena for business records upon a licensee, delivered
212 to an office of such licensee located within the commonwealth shall be deemed to have been
213 served at the location, whether within or outside the commonwealth, where the original business
214 records or documents are kept or maintained.
215(c) Examinations. The Commissioner shall inspect a licensee’s relevant records and
216 evidence of compliance with the provisions of this chapter or any rule or regulation issued
217 hereunder and with any other law, rule or regulation applicable to the conduct of the business for
218 which it is licensed under this chapter. For the purposes of such inspection, the Commissioner or
219 a representative of the Commissioner shall have access to the offices and place of business,
220 books, accounts, papers, records and files of all such licensees. The Commissioner, and any
221 person designated by him, may require the attendance and testimony of any person whom the
222 Commissioner deems necessary relative to the conduct and operation of such business. The total
223 cost for any such inspection, which shall be paid by the licensee within 30 days after the receipt
224 of an invoice therefore, shall be in accordance with fees determined annually by the
225 Commissioner of administration pursuant to section 3B of chapter 7, including expenses for
226 necessary travel outside the commonwealth for the purposes of conducting such inspections.
227During the course of such inspection, a shared equity investor that has entered into 50 or
228 more shared equity investments in the last calendar year shall be examined for its compliance
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229 with applicable anti-discrimination laws and laws prohibiting unfair, deceptive, or abusive acts
230 or practices in consumer financial products or services. Such examination shall also include an
231 evaluation of such shared equity investor’s: (a) origination of shared equity investments and
232 consistency with safe and sound business practices; (b) efforts working with homeowners to
233 resolve performance defaults; and (c) disclosure and education of homeowners about the terms
234 of shared equity investment products. The Commissioner may make rules prescribing additional
235 factors for measuring a licensee’s performance.
236Upon the completion of such examination, the Commissioner shall prepare a written
237 evaluation of such shared equity investor’s record of performance, which shall be open to public
238 inspection upon request, and said written evaluation shall include: (a) the assessment factors
239 utilized to determine the shared equity investor’s descriptive rating; (b) the Commissioner’s
240 conclusions with respect to each such assessment factor; (c) a discussion of the facts supporting
241 such conclusions; and (d) the shared equity investor’s descriptive rating and the basis therefor.
242Based upon such examination, the shared equity investor shall be assigned 1 of the
243 following descriptive ratings: (a) outstanding record of performance; (b) high satisfactory record
244 of performance; (c) satisfactory record of performance; (d) needs to improve record of
245 performance; or (e) substantial noncompliance.
246In considering an application from a licensed shared equity investor for a renewal of a
247 license issued pursuant to this chapter, the Commissioner shall consider, but not be limited to,
248 the record of performance of any such shared equity investor in accordance with this section.
249 Said record of performance may provide the basis for the denial of any such renewal application.
250The Commissioner shall adopt regulations implementing the requirements of this section.
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251The Commissioner shall preserve a full record of each such examination of a licensee,
252 including a statement of its condition. All records of investigation and reports of examination by
253 the commissioner, including work papers, information derived from such reports or in response
254 to such reports, and any copies thereof in the possession of any licensee under the supervision of
255 the commissioner, shall be confidential and privileged communications, shall not be subject to
256 subpoena and shall not be a public record under clause Twenty-sixth of section 7 of chapter 4.
257 For the purpose of this paragraph, records of investigation and reports of examinations shall
258 include records of investigation and reports of examinations conducted by any financial
259 institution regulatory agency of the federal government and any other state, and of any foreign
260 government which are considered confidential by such agency or foreign government and which
261 are in possession of the Commissioner. In any proceeding before a court, the court may issue a
262 protective order to seal the record protecting the confidentiality of any such record, other than
263 any such record on file with the court or filed in connection with the court proceeding, and the
264 court may exclude the public from any portion of a proceeding at which any such record may be
265 disclosed. Copies of such reports of examination shall be furnished to a licensee for its use only
266 and shall not be exhibited to any other person, organization or agency without prior written
267 approval by the Commissioner. The Commissioner may, in his discretion, furnish to regulatory
268 agencies of the federal government, of other states, or of foreign countries and any law
269 enforcement agency, such information, reports, inspections and statements relating to the
270 licensees under his supervision.
271Section 9: Shared equity investor obligations
272(a) Recission period. A shared equity investor shall provide at least three business days in
273 which the homeowner may rescind their acceptance of the shared equity investment before such
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274 shared equity investment becomes effective and binding for the homeowner. The homeowner
275 shall submit the rescission notice in writing to the shared equity investor within such designated
276 rescission period.
277(b) Except in connection with a home purchase transaction, the homeowner's beginning
278 home equity must be equal to or greater than 10 percent. For purposes of this provision, if any
279 portion of the investment amount will be used to pay down existing obligations secured by the
280 residential property, the homeowner’s beginning home equity will be calculated after application
281 of the investment amount to pay down such obligations.
282(c) All appraisals or other valuation reports used to determine the agreed home value
283 must meet industry standards and be conducted by an independent third party, unless an
284 affiliated appraisal or valuation is disclosed and consented to in writing by the homeowner.
285 Copies of all valuation reports must be provided to the homeowner.
286(d) The annualized cost of a shared equity investment may not exceed 20 percent.
287Section 10: Disclosure requirements
288(a) Prior to entering into a shared equity investment, a shared equity investor shall
289 provide a disclosure to the homeowner in a form prescribed by the Commissioner. The
290 disclosure shall contain at least the following information:
291(i) A clear and conspicuous statement that (1) by entering into the shared equity
292 investment, a lien will be placed on the property and that failure to comply with the terms of the
293 shared equity investment or an inability to settle the shared equity investment may result in the
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294 homeowner losing their property, and (2) that the homeowner should obtain the advice of an
295 attorney before proceeding with the transaction.
296(ii) A summary of the terms of the shared equity investment including:
297(1) The investment amount;
298(2) An itemization of any charges and payments to third parties and any fees paid to the
299 shared equity investor which are deducted from the investment amount;
300(3) The net proceeds to be delivered to the homeowner after the expiration of the
301 recission period;
302(4) The maximum term of the shared equity investment;
303(5) How the homeowner can settle the shared equity investment together with an
304 explanation of how the settlement payment will be calculated; and
305(6) A summary of the types of fees that may be charged in connection with settling the
306 shared equity investment.
307(iii)(1) The agreed home value without adjustment and the method used to determine the
308 agreed home value; and (2) if the agreed home value is adjusted for any discounts, risk
309 adjustments, or enhancements for purposes of the shared equity investment, the amount of such
310 adjustments and the value of the property used for purposes of calculating the shared equity
311 investor’s equity interest in the property;
312(iv) The method of determining the final value of the property that is the subject of the
313 shared equity investment upon settlement of the shared equity investment;
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314(v) The maximum equity interest in the property that the shared equity investor may
315 receive under the terms of the shared equity investment or an explanation of any other limits on
316 the amount that the shared equity investor may receive under the shared equity investment;
317(vi) Any other amounts charged in connection with the shared equity investment;
318(vii) Settlement examples for the shared equity investment after three years, five years,
319 10 years, 15 years, and 30 years, in each case up to the maximum term of the applicable shared
320 equity investment.
321(1) For each settlement time frame, examples shall be provided based on:
322(A) No change in the value of the property;
323(B) A total depreciation of 10 percent;
324(C) Annual appreciation of three and one half percent;
325(D) Annual appreciation of five and one half percent; and
326(E) The actual annualized change in value of residential real property in Massachusetts
327 over the prior five year period, measured from the most recent available data point in the All-
328 Transactions House Price Index as published by the Federal Reserve Bank of St. Louis.
329(2) For each combination of settlement time frame and property change in value specified
330 in subsection (vii)(1) of this section, the homeowner shall be provided with:
331(A) The projected final value of the property;
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332(B) The equity interest that the shared equity investor would be entitled to receive,
333 expressed as a percentage of projected final property value;
334(C) The dollar value of such equity interest, and if any cap applies, the capped dollar
335 value required to settle the shared equity investment; and
336(D) An annual percentage rate equivalent based on the investment amount, the gross
337 estimated settlement cost, and the number of days from the disbursement of the investment
338 amount to settlement.
339(b) Shared equity investors may provide homeowners with additional disclosures
340 provided that the form disclosure prescribed by the Commissioner is used and there is no
341 inconsistency between such disclosures.
342Section 11: Counseling
343(a)A shared equity investor shall not make a shared equity investment as provided in this
344 chapter until it has received a notice, in writing, that the prospective customer has completed a
345 shared equity investment counseling program which has been approved by the division of banks
346 and which shall include instruction on shared equity investments. The counseling program shall
347 include, but is not limited to, the subject matter of sections 9 and 10 inclusive, of this chapter,
348 with respect to all shared equity investments approved by the commissioner pursuant to this
349 section. For the purpose of providing the counseling, the division of banks shall establish and
350 maintain a list of counseling programs approved by it and shall make such list available to all
351 shared equity investors and to the public.
352Section 12: Prohibited acts
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353A shared equity investor is prohibited from engaging in any of the following:
354(a) Charging any penalty for settling a shared equity investment before the end of the
355 shared equity investment’s specified term;
356(b) Preventing the homeowner from renting or using the property as the homeowner
357 chooses, provided that such use complies with applicable law. Nothing in this subsection
358 prohibits a shared equity investment from:
359(1) Requiring that the homeowner notify the shared equity investor of a change in use;
360(2) Requiring the homeowner to obtain commercially appropriate property insurance in
361 connection with any use of the property; or
362(3) Imposing risk-based pricing adjustments on properties that are not the homeowner’s
363 primary residence;
364(c) Requiring the use of an appraisal or valuation report prepared or managed by an
365 appraiser, appraisal management company, or other valuation service provider affiliated with the
366 shared equity investor except the homeowner and shared equity investor may agree to the use of
367 an affiliated appraiser or appraisal management company to the extent that such affiliation is
368 disclosed and consented to in writing by the homeowner;
369(d) Agreeing to a valuation that differs from the value obtained by the appraisal or other
370 third-party means unless:
371(1) At least one third-party valuation report is obtained and shared with the homeowner to
372 provide an indication of market value; and
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373(2) The value that differs from the appraisal or third-party valuation report is fully
374 disclosed to the homeowner and the homeowner agrees to the alternative value in writing;
375(e) Including provisions in the shared equity investment that prohibit the homeowner
376 from refinancing a mortgage or lien on a property that is the homeowner’s primary residence,
377 provided that:
378(i) Nothing in this subsection obligates a shared equity investor or shared equity
379 investment holder to subordinate their lien to any other lien holder; and
380(ii) If the homeowner is seeking a cash out refinancing, the shared equity investment may
381 require that the proceeds of such refinancing be used to settle the shared equity investment; and
382(f) Charging an amount to settle a shared equity investment that exceeds the amount
383 permitted under Section 9(d) of this chapter, plus reimbursement for payments made on behalf of
384 the homeowner or administrative fees charged to the homeowner during the term of the shared
385 equity investment.
386Section 13: Civil actions filed by Commissioner
387The Commissioner may enforce the provisions of this chapter, or restrain any violations
388 thereof, by filing a civil action in any court of competent jurisdiction.
389Section 14: Penalties
390Whoever violates section 2 or any rule or regulation promulgated thereunder shall be
391 punished by a fine of not more than $2,000 or by imprisonment in the house of correction for not
392 more than 2 1/2 years or by imprisonment in state prison for not more than 5 years, or both such
393 fine and imprisonment. Each day such violation occurs or continues shall be deemed a separate
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394 offense. The penalty provision of this section shall be in addition to, and not in lieu of, any other
395 law applicable to a licensee or other person for violating section 2 or any rule or regulation made
396 thereunder.
397Section 15: Penalties; no limitation on civil action; review
398(a) Whenever the Commissioner finds that any licensee or exempt person under section 2
399 has violated this chapter or any rule or regulation adopted thereunder, or any other law of the
400 commonwealth applicable to the conduct of the business of making home equity investments on
401 residential property in the commonwealth, the Commissioner may, by order, in addition to any
402 other action authorized under this chapter or any rule or regulation made thereunder, impose a
403 penalty upon the person which shall not exceed $5,000 for each violation, up to a maximum of
404 $100,000 for such violation plus the costs of investigation. The Commissioner may impose a
405 penalty which shall not exceed $5,000 for each violation of this chapter, or any rule or regulation
406 adopted thereunder, by a person other than a licensee or exempt person under section 2, plus the
407 costs of investigation.
408(b) Nothing in this section shall limit the right of any individual or entity who has been
409 injured as a result of any violation of this chapter by a licensee, or any person other than a
410 licensee or exempt person under section 2, to bring an action to recover damages or restitution in
411 a court of competent jurisdiction.
412(c) Any findings or order issued by the Commissioner pursuant to this section shall be
413 subject to review as provided in chapter 30A.
414Section 16: Written notice of intention to prohibit; statement of facts; order of
415 prohibition; service
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416(a) Whenever the Commissioner determines that any person has, directly or indirectly,
417 violated any section of this chapter or any rule or regulation adopted thereunder, applicable to the
418 conduct of the business of making shared equity investments in the commonwealth, or any order
419 issued by the Commissioner under this chapter or any written agreement entered between the
420 licensee and the Commissioner, the Commissioner may serve upon that person a written notice
421 of intention:
422(1) to prohibit the person from performing in the capacity of a principal employee on
423 behalf of any licensee for a period of time that the Commissioner considers necessary to cure the
424 condition giving rise to the Commissioner’s action;
425(2) to prohibit the person from applying for or obtaining a license from the Commissioner
426 for a period up to 36 months following the effective date of an order issued under subsection (b)
427 or (c); or
428(3) to prohibit the person from any further participation, in any manner, in the conduct of
429 the affairs of a shared equity investor in Massachusetts or to prohibit the person from being
430 employed by, an agent of, or operating on behalf of a licensee under this chapter or any other
431 business which requires a license from the Commissioner.
432(b) A written notice issued under subsection (a) shall contain a written statement of the
433 facts that support the prohibition and shall give notice of an opportunity for a hearing to be held
434 thereon. The hearing shall be fixed for a date not more than 30 days after the date of service upon
435 the Commissioner of the request for a hearing. If the person fails to submit a request for a
436 hearing within 20 days of service of notice under subsection (a), or otherwise fails to appear in
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437 person or by a duly authorized representative, the party shall be considered to have consented to
438 the issuance of an order of prohibition in accordance with the notice.
439(c) In the event of the consent under subsection (b), or if after a hearing the
440 Commissioner finds that any of the grounds specified in the notice have been established, the
441 Commissioner may issue an order of prohibition in accordance with subsection (a) as the
442 Commissioner finds appropriate.
443(d) An order issued under subsection (b) or (c) shall be effective upon service upon the
444 person. The Commissioner shall also serve a copy of the order upon the licensee of which the
445 person is an employee or on whose behalf the person is performing. The order shall remain in
446 effect and enforceable until it is modified, terminated, suspended, or set aside by the
447 Commissioner or a court of competent jurisdiction.
448(e) Except as consented to in writing by the Commissioner, any person who, pursuant to
449 an order issued under subsection (b) or (c), has been prohibited from participating in whole or in
450 part in the conduct of the affairs of a shared equity investor in Massachusetts may not, while the
451 order is in effect, continue or commence to perform in the capacity of a principal employee, or
452 otherwise participate in any manner, if so prohibited by order of the Commissioner, in the
453 conduct of the affairs of:—
454(1) any licensee under this chapter;
455(2) any other business which requires a license from the Commissioner; or
456(3) any bank, as defined under section 1 of chapter 167 or any subsidiary thereof.
457Section 16: Rulemaking
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458The Commissioner may adopt, amend or repeal rules and regulations to prescribe safe
459 and sound operating standards for licensees, the forms and process used for the license
460 application process, and consumer protections, and to aid in the administration and enforcement
461 of this chapter.
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