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Workgroup hears bill to make conventional mortgages assumable as tool to widen homebuying options
Summary
A Virginia Housing Commission workgroup discussed Senator Glenn Sturtevant—s pilot to allow assumable conventional mortgages, with proponents saying it could expand buyers— access while industry witnesses urged narrowing the proposal to avoid conflicts with federally backed programs.
Senator Glenn Sturtevant introduced legislation to create a pilot allowing assumability for certain conventional mortgages, saying the change would give buyers an alternative route into homeownership without overturning existing loan contracts.
The bill would make some private, conforming mortgages assumable prospectively so that a buyer could take over an existing mortgage at its original rate if they meet the lender—s underwriting standards. "My plan for this session is to make it a pilot program, for probably 5 years, and to try to narrow it down to just what I understand are sort of the most common mortgages, which are called conforming mortgages," Sturtevant said. He emphasized the proposal would be prospective, not retroactive, and would not eliminate lenders— existing underwriting or foreclosure remedies.
Proponents said the proposal addresses…
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