Maryland passed a bill requiring an assumption provision be included in a conventional home mortgage loans. Under the bill, a conventional home mortgage loan must include a provision allowing any existing borrowers on the loan to assume the property interest of another borrower on the loan if:
- The assumption is in connection with the granting of a decree of absolute divorce, and
- The assuming borrower qualifies for the loan.
The bill also requires a mortgage lender to disclose the assumption provision to a loan applicant prior to completion of the loan application. Conventional home mortgage loan does not include a loan insured or guaranteed by the federal government. The bill applies to banks, credit unions and mortgage lenders licensed under the Mortgage Lender Law. The bill becomes effective October 1, 2025.
Click to view the Maryland House Bill 1018: https://www.tenaco.com/wp-content/uploads/2025/05/MD-HB-1018-04-23-25.pdf
