Maine Bureau of Consumer Credit Protection Cautions Mainers about New Financial Product
July 13, 2026
AUGUSTA, Maine - The Maine Bureau of Consumer Credit Protection (BCCP) cautions consumers to be wary of a relatively new type of financial product called a "Shared Appreciation Mortgage" (SAM), also referred to as a Home Equity Investment (HEI). These products are often marketed as a way for homeowners to access cash without taking on additional monthly payments. Although these agreements may appear flexible, they are complex agreements that can lead to significant or unexpected costs.
A consumer who contracts for a SAM or HEI receives an upfront payment amount in exchange for a share of their home's future value, which is repaid later as a lump sum and can become very expensive if the home value increases. The payment typically becomes due when the home is sold, the homeowner dies, or the contract ends, which may be as little as ten years.
Fortunately, consumers in Maine are protected by emergency legislation signed by Governor Mills on April 13, 2026, which defines a SAM or HEI loan as a mortgage loan rather than an investment contract. This law ensures that Maine consumers receive the range of consumer protections against foreclosure that apply to all mortgages and requires sellers of these products be licensed by BCCP. In addition, the law includes a three-day right to cancel the contract and a limit on loan costs.
Linda Conti, Superintendent of the Bureau of Consumer Credit Protection, warns that as some Mainers continue to face financial headwinds, the temptation or need to tap into home equity may grow. She added, Any Mainer who is considering tapping into their homes equity should compare these equity transactions to traditional alternatives such as home equity loans, home equity lines of credit (HELOCs), or state and local assistance programs. Mainers interested in a SAM or HEI loan should consider consulting a trusted financial professional and ensure that product is offered by a lender licensed by BCCP.
Consumers can verify whether a lender is licensed on BCCPs website, through the Nationwide Multistate Licensing System Consumer Access portal.
Consumers with questions about SAM, HEI, HELOC, or Reverse Mortgages may contact BCCP at 1 800 332 8529 or (207) 624 8527.
Information on the new law is available on the Maine Legislature's Website.
BCCP is an agency within the Department of Professional and Financial Regulation. BCCP oversees many aspects of the consumer finance industry, including non-bank mortgage lenders, debt collectors, loan brokers, retail creditors, money transmitters, consumer reporting agencies, student loan servicers, and non-bank ATMs. More information about BCCP is available on BCCP's Website
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