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Bill would require conventional mortgage lenders to allow assumption in divorce cases; industry seeks timing and retroactivity changes
Summary
HB1018 would require certain conventional mortgage loans to include assumability language and require lenders to disclose assumption provisions prior to application in divorce cases; housing advocates supported the change but mortgage bankers asked for limitations on retroactivity and a longer implementation window.
House Bill 1018 would require lenders and mortgage servicers to include or make available language authorizing certain borrowers to assume conventional home mortgage loans in cases of absolute divorce and to disclose the possibility of assumption to loan applicants.
Sponsor Delegate Andrew Pruski framed the bill as a tool to keep households in place during divorce and to preserve low‑interest mortgages acquired under previous market conditions. "This could mean the difference for people to stay in their home or being uprooted during a tumultuous time," Pruski said.
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