“In plain language, what this means is that mortgage lender BlueHub Capital – the only [nonprofit] mortgage lender in Massachusetts making shared appreciation mortgages – will be exempt from every consumer protection law in Massachusetts,” Thomas wrote in a letter. “This legislation is a get out of jail free pass for one mortgage lender. And what will happen next? Every other mortgage lender will want the same thing.”
The National Consumer Law Center and the Massachusetts Mortgage Bankers Association have also submitted letters opposing the amendment.
On the other hand, Rose Webster-Smith, a housing advocate and recipient of a BlueHub shared appreciation loan, supports the amendment. She said BlueHub clearly explains its terms and doesn’t sell them to other lenders.
“They’re not going to put you in a loan you can’t afford,” said Webster-Smith. “This is a tool to get you back on your feet.”
BlueHub argued that the legislation would allow them to use shared appreciation mortgages in the future if foreclosures rise again. They noted that while home values are currently stable, this tool could be useful in future downturns.
Source: mpamag.com