Financial Institutions - Conventional Home Mortgage Loans - Assumption and Required Disclosures

SB 689 requires banks and credit unions to include a specific provision in conventional home mortgage loans, allowing one borrower to assume the other’s mortgage share when a divorce decree is granted. It mandates that financial institutions disclose this assumption option in writing to loan applicants before the application is finalized. The bill applies only to conventional mortgages (not government-insured loans) and affects divorcing borrowers seeking to transfer property ownership. Key provisions include requiring the assumption clause in loan contracts and ensuring written disclosure prior to loan approval.