De facto ban on shared equity products cuts off a critical financial lifeline for seniors, fixed-income residents, and struggling families
MANASSAS, Va. — The Coalition for Home Equity Partnership (CHEP) today issued a strong rebuke of the Maine Legislature’s passage of LD 1901, “An Act to Regulate Shared Appreciation Agreements Relating to Residential Property.” CHEP contends that the legislation, rather than protecting consumers as it purports to do, will effectively ban shared equity products (SEPs) in Maine. As a result, it will eliminate access to a critical financial tool available to tens of thousands of homeowners for tapping into one of their most valuable assets — the wealth tied up in their homes.
“The passage of LD 1901 will have real consequences for Maine families, business owners, and seniors during a time of growing financial uncertainty. Lawmakers set out to protect homeowners but instead passed legislation built on a flawed foundation that makes it operationally impossible for shared equity providers to serve them,” said Cliff Andrews, president of CHEP. “Maine homeowners deserve a fair, evidence-based process that evaluates proper safeguards to provide protections without eliminating consumer choice.”
Maine is in the throes of a deepening affordability crisis. According to Maine’s Housing Outlook published in January 2026 by the Maine State Housing Authority, home prices surged 35 percent between 2021 and 2025, while wages grew only 27 percent. When combined with rising property taxes and insurance costs, as well as credit card balances approaching $8,000 per household on average according to a recent WalletHub study, Maine now ranks first in the nation for the fastest-growing consumer debt. Simultaneously, U.S. Census Bureau population estimates indicate Maine has the highest share in the nation of residents aged 65 or older, many of whom are trapped in their homes with significant equity but no viable means to access it.
A February 2026 study from Urban Institute analyzed more than 54,000 SEP agreements originated nationwide indicating 63 percent of homeowners use SEPs to pay down high-interest debt, with another 21 percent using funds for home improvements, and 13 percent using them for savings and investment purposes. At the same time, approximately 35 percent of all equity-extraction mortgage applications were denied nationwide in 2024. SEPs exist precisely to serve these homeowners and support common financial objectives.
LD 1901 applies mortgage loan regulations to SEPs, a framework that industry experts and the Urban Institute maintain are fundamentally incompatible. SEPs have no loan balance, no interest rate, no periodic payments, and no amortization schedule. Compliance requirements such as annual percentage rate disclosures cannot be calculated when costs depend on unknown future home values. The result, as CHEP has consistently warned, is prohibition by incompatibility.
Furthermore, CHEP notes that Maine already has meaningful homeowner protections in place. Advisory Ruling 122 from the Superintendent of Consumer Credit Protection, effective Oct. 29, 2025, requires licensure for providers of SEPs. CHEP members fully support this requirement. The Bureau of Consumer Credit Protection has authority to review and deny license applications from providers that do not meet its standards without any new legislation being required. As a result, CHEP is urging Governor Janet Mills to veto LD 1901 and direct the Legislature to develop a tailored regulatory framework consistent with the actual characteristics of these unique products.
“We urge Governor Mills to veto this bill and ensure Maine rulemaking truly reflects homeowners’ best interests. We are not asking to operate without accountability; we are asking for a framework we can comply with that ensures Mainers can access the equity they have built in their homes when they need it most,” said Andrews.
CHEP is advocating for such a framework to incorporate licensing, standardized disclosures, cost caps, rescission periods, and appraisal standards, among other provisions, that many of its members have already voluntarily adopted. Ultimately, greater certainty about the regulatory environment would help lower costs for homeowners, adding further value to the 75,000 to 105,000 Maine households that could benefit from SEPs.
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ABOUT THE COALITION FOR HOME EQUITY PARTNERSHIP
The Coalition for Home Equity Partnership (CHEP) is a collective of financial services companies that offer flexible ways to tap home equity. The association is dedicated to the protection and promotion of the shared equity product industry with a focus on education, advocacy and marketplace innovation that improves homeowners’ financial lives. For more information, visit homeequitypartnership.org.