AB 3100: Assumption of mortgage loans: dissolution of marriage.

Existing law defines and regulates mortgages, including recording notices of default and applications for loan modification. The California Consumer Financial Protection Law requires the Department of Financial Protection and Innovation to regulate the offering and provision of consumer financial products or services under California consumer financial laws and to exercise nonexclusive oversight and enforcement authority under California consumer financial laws.

This bill would require a conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing 4 or fewer dwelling units with multiple borrowers to include provisions to allow for any of the existing borrowers to purchase the property interest of another borrower on the loan by assuming the sellers portion of the mortgage under specified circumstances if the assuming borrower qualifies for the underlying loan, as determined by the lender.