MD HB1018

Banking institutions, credit unions, and mortgage lenders must include provisions in conventional home mortgage loans allowing one borrower to assume another borrower's portion of the mortgage when purchasing their property interest in connection with an absolute divorce decree, provided the assuming borrower qualifies for the loan

Lenders must disclose the mortgage assumption provision in writing to loan applicants before completion of the loan application

The law applies only to conventional home mortgage loans not already required by state or federal law to be assumable in divorce situations, and excludes loans insured or guaranteed by the federal government

The assumption provisions apply retroactively to conventional mortgages exceeding Federal Housing Finance Agency lending limits entered into before the effective date, allowing assumption for divorce decrees entered on or after October 1, 2025

Effective October 1, 2025; approved by Governor Wes Moore on April 22, 2025