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VA SB546

VA SB546
Mortgages; annual notice of potential assumption required, delayed effective date.


summary

Introduced
01/14/2026
In Committee
02/04/2026
Crossed Over
01/29/2026
Passed
Dead

Introduced Session

Potential new amendment
2026 Regular Regular Session

Bill Summary

Mortgages; annual notice of potential assumption required. Requires a mortgage lender to send an annual notice to the owner of residential real estate that is encumbered by a mortgage that such mortgage may be assumable in connection with certain federally backed loans or conventional loans. The bill has a delayed effective date of January 1, 2027. As introduced, this bill was a recommendation of the Virginia Housing Commission.

AI Summary

This bill requires mortgage lenders to send an annual notice to homeowners, along with their regular escrow account statement, informing them that their mortgage might be assumable. This applies to certain federally backed loans, such as those insured by the Federal Housing Administration (FHA), the U.S. Department of Agriculture, or the U.S. Department of Veterans Affairs, as well as conventional loans that fall under a specific federal law, the Garn-St. Germain Depository Institutions Act of 1982. The bill clarifies that this new notice does not replace or limit existing rights for homeowners to inquire about or for lenders to disclose assumption terms under another section of Virginia law. This measure is a recommendation from the Virginia Housing Commission and is set to take effect on January 1, 2027.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Assigned HCL sub: Subcommittee #1 (on 02/17/2026)

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