California 2023-2024 Regular Session

California Assembly Bill AB3100 Compare Versions

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Version 2 (New)

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1		-	Assembly Bill No. ~~3100 CHAPTER 431An~~ act to add Section 2951 to the Civil Code, relating to mortgage loans. ~~[ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]~~ LEGISLATIVE COUNSEL'S DIGESTAB 3100, Low. 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 2951 is added to the Civil Code, to read:2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.(b) For purposes of this section: (1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.
	1	+	Enrolled August 29, 2024 Passed IN Senate August 26, 2024 Passed IN Assembly August 27, 2024 Amended IN Senate June 06, 2024 Amended IN Assembly April 11, 2024 Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 3100Introduced by Assembly Member LowFebruary 16, 2024An act to add Section 2951 to the Civil Code, relating to mortgage loans.LEGISLATIVE COUNSEL'S DIGESTAB 3100, Low. 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 2951 is added to the Civil Code, to read:2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.(b) For purposes of this section: (1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.
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3		-	Assembly Bill No. ~~3100 CHAPTER 431An~~ act to add Section 2951 to the Civil Code, relating to mortgage loans. ~~[ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]~~ LEGISLATIVE COUNSEL'S DIGESTAB 3100, Low. 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
	3	+	Enrolled August 29, 2024 Passed IN Senate August 26, 2024 Passed IN Assembly August 27, 2024 Amended IN Senate June 06, 2024 Amended IN Assembly April 11, 2024 Amended IN Assembly March 21, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 3100Introduced by Assembly Member LowFebruary 16, 2024An act to add Section 2951 to the Civil Code, relating to mortgage loans.LEGISLATIVE COUNSEL'S DIGESTAB 3100, Low. 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.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
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5		-	Assembly ~~Bill No.~~ ~~3100 CHAPTER 431~~
	5	+	Enrolled August 29, 2024 Passed IN Senate August 26, 2024 Passed IN Assembly August 27, 2024 Amended IN Senate June 06, 2024 Amended IN Assembly April 11, 2024 Amended IN Assembly March 21, 2024
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7		-	Assembly Bill No. 3100
	7	+	Enrolled August 29, 2024
	8	+	Passed IN Senate August 26, 2024
	9	+	Passed IN Assembly August 27, 2024
	10	+	Amended IN Senate June 06, 2024
	11	+	Amended IN Assembly April 11, 2024
	12	+	Amended IN Assembly March 21, 2024
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9		-	CHAPTER 431
	14	+	CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
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	16	+	Assembly Bill
	17	+
	18	+	No. 3100
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	20	+	Introduced by Assembly Member LowFebruary 16, 2024
	21	+
	22	+	Introduced by Assembly Member Low
	23	+	February 16, 2024
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11	25		An act to add Section 2951 to the Civil Code, relating to mortgage loans.
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13		-	[ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]
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15	27		LEGISLATIVE COUNSEL'S DIGEST
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17	29		## LEGISLATIVE COUNSEL'S DIGEST
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19	31		AB 3100, Low. Assumption of mortgage loans: dissolution of marriage.
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21	33		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.
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23	35		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.
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25	37		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.
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27	39		## Digest Key
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29	41		## Bill Text
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31	43		The people of the State of California do enact as follows:SECTION 1. Section 2951 is added to the Civil Code, to read:2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.(b) For purposes of this section: (1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.
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33	45		The people of the State of California do enact as follows:
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35	47		## The people of the State of California do enact as follows:
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37	49		SECTION 1. Section 2951 is added to the Civil Code, to read:2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.(b) For purposes of this section: (1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.
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39	51		SECTION 1. Section 2951 is added to the Civil Code, to read:
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41	53		### SECTION 1.
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43	55		2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.(b) For purposes of this section: (1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.
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45	57		2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.(b) For purposes of this section: (1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.
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47	59		2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.(b) For purposes of this section: (1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.
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51	63		2951. (a) A conventional home mortgage loan originated on or after January 1, 2027, and secured by owner-occupied residential real property containing four or fewer dwelling units with multiple borrowers shall 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 in connection with a decree of dissolution of marriage, a legal separation agreement, or an incidental property settlement if the assuming borrower qualifies for the underlying loan, as determined by the lender.
52	64
53	65		(b) For purposes of this section:
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55	67		(1) Conventional home mortgage loan means a mortgage loan that is not insured or guaranteed by the federal government.
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57	69		(2) Owner-occupied means that the property is the principal residence of the borrowers and is security for a loan made for personal, family, or household purposes.