summary
Introduced
01/09/2026
01/09/2026
In Committee
02/23/2026
02/23/2026
Crossed Over
02/04/2026
02/04/2026
Passed
03/03/2026
03/03/2026
Dead
Introduced Session
Potential new amendment
2026 Regular Regular Session
Bill Summary
Conventional home mortgage loans; assumption provisions. Requires any lender for any conventional home mortgage loan secured on or after July 1, 2026, by a mortgage or deed of trust on owner-occupied residential real estate located in the Commonwealth to include provisions in such loan to allow for any of the existing borrowers to purchase the property interest of another borrower on the loan by assuming the seller's portion of the mortgage in connection with a decree of annulment or divorce if the assuming borrower qualifies for the underlying loan, as determined by the lender.
AI Summary
This bill requires lenders for conventional home mortgage loans, which are loans for personal, family, or household purposes secured by a mortgage on owner-occupied homes with four or fewer units and not insured by the federal government, to include provisions allowing one borrower to assume the other's portion of the mortgage in cases of annulment or divorce, provided the assuming borrower qualifies for the loan. This provision applies to loans secured on or after July 1, 2026, and lenders must disclose this assumption option in writing to loan applicants within three days of receiving a completed application, with an exception for loans already required to be assumable due to divorce under other laws.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Fiscal Impact Statement from State Corporation Commission (HB304) (on 03/05/2026)
Official Document
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bill summary
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bill summary
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