On Sep. 5, CAL LEG passed bill for existing borrower to buy out loan.
CAL LEG passed bill AB 3100 to require mortgages on certain residential properties with multiple borrowers to allow for assumption of co-borrower's portion of mortgage.
Title of Assembly legislation, Assumption of mortgage loans: dissolution of marriage.
Adds Section 2951 to CAL Civil Code (CIV), CAL LEG 3-4-14-2-2-2951 on mortgages.
Bill Provisions
AB 3100 creates new provision for California Civil Code's rights of mortgage borrowers.
Existing property borrowers in a residential real property with four or less units (with multiple borrowers) can purchase the property interest of another of the borrowers.
If qualified, the potential buyer can assume the seller's portion of the mortgage loan.
Provision applies to conventional home mortgages originated on or after Jan. 1, 2027.
Residential real property at issue must be owner-occupied as the principle residence.
Legislative History
On Feb. 16, 2024, bill introduced in Assembly; on Apr. 22, 2024, bill passed Assembly.
On Apr. 22, 2024, bill introduced in Senate; on Aug. 26, 2024, bill passed the Senate.
On Aug. 27, 2024, bill concurred with Senate amendments and ordered to enrolling.
On Aug. 29, 2024, bill enrolled; on Sep. 5, 2024, bill was presented to the governor.
Effectiveness
If approved, bill takes effect on Jan. 1 of the year after bill enactment, Jan. 1, 2025.
Sep. 2024 CAL LEG Governor Approval
On Sep. 22, 2024, CAL LEG governor approved bill AB 3100 and assigned Ch. 431.
Regulators
CAL DFPI; CAL LEG
Entity Types
Bank; CNSM; MG Orig; Servicer
Reference
Ch. 431, 9/22/2024; Bill AB3100, 9/5/2024; Citation: CAL LEG 3-4-14-2-2;
