Mortgages; annual notice of potential assumption required, delayed effective date.
A BILL to amend the Code of Virginia by adding a section numbered 6.2-419.1, relating to mortgages; annual notice of potential assumption required.
Taxes
Enacted
This bill passed the Legislature and reached final enactment based on the latest official action.
Sponsor
Sturtevant
Last action
2026-03-10
Official status
Failed
Effective date
Not listed
Plain English Breakdown
Checked against official source text during the last sync.
Annual Notice for Mortgage Assumption
This bill requires mortgage lenders to send an annual notice to homeowners about the possibility of assuming certain types of mortgages.
What This Bill Does
Requires mortgage lenders to include a notice with annual escrow account statements.
The notice must inform owners if their mortgage can be assumed under federal or conventional loans.
Sets a delayed effective date for January 1, 2027.
Who It Names or Affects
Homeowners who have mortgages on residential real estate.
Mortgage lenders required to send annual escrow account statements.
Terms To Know
Assumable mortgage
A type of loan that can be transferred from one borrower to another under certain conditions, particularly in connection with federal or conventional loans.
Escrow account statement
An annual report sent by a mortgage lender detailing how much money is held for property taxes and insurance payments.
Limits and Unknowns
The bill does not specify what happens if the notice is not sent.
It only applies to mortgages that require annual escrow account statements.
The exact wording of the notice is not detailed in this summary.
Amendments
These notes stay tied to the official amendment files and metadata from the legislature.
Plain English: The amendment to SB546 adds a requirement for annual notice about potential mortgage assumption and sets an effective date of January 1, 2027.
Adds language requiring lenders to provide borrowers with information on the possibility of assuming their mortgages annually.
Sets the law's start date as January 1, 2027.
The exact details about what information must be included in the annual notice are not specified in this amendment text.
Plain English: The amendment changes a part of the bill to require annual notices about mortgage assumptions and sets an effective date for these new requirements.
Changes the wording in the bill to specify that lenders must provide annual notice to borrowers about the potential assumption of their mortgages.
Adds a provision stating that the new law will take effect on January 1, 2027.
The amendment text does not fully explain what 'potential assumption' means in detail, so more context is needed to understand exactly how this notice would work.
Bill History
2026-03-10House
Left in Labor and Commerce
2026-02-24Subcommittee #1
Subcommittee recommends laying on the table (6-Y 2-N)
2026-02-23Senate
Fiscal Impact Statement from State Corporation Commission (SB546)
2026-02-17Subcommittee #1
Assigned HCL sub: Subcommittee #1
2026-02-04House
Placed on Calendar
2026-02-04House
Read first time
2026-02-04Labor and Commerce
Referred to Committee on Labor and Commerce
2026-01-30Senate
Read third time and passed Senate Block Vote (38-Y 0-N 0-A)
Reported from Commerce and Labor with amendments (15-Y 0-N)
2026-01-26Senate
Senate committee offered
2026-01-25Senate
Fiscal Impact Statement from State Corporation Commission (SB546)
2026-01-14Senate
Prefiled and ordered printed; Offered 01-14-2026 26101250D
2026-01-14Commerce and Labor
Referred to Committee on Commerce and Labor
Official Summary Text
Mortgages; annual notice of potential assumption required.
Requires a mortgage lender to send an annual notice to the owner of residential real estate that is encumbered by a mortgage that such mortgage may be assumable in connection with certain federally backed loans or conventional loans. The bill has a delayed effective date of January 1, 2027. As introduced, this bill was a recommendation of the Virginia Housing Commission.
Current Bill Text
Read the full stored bill text
A BILL to amend the Code of Virginia by adding a section numbered
6.2-419.1
, relating to mortgages; annual notice of potential assumption required.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding a section numbered
6.2-419.1
as follows:
§
6.2-419.1
. Annual notice of potential assumption of mortgage.
Where a mortgage lender is required by relevant law to send an annual escrow account statement to an owner of residential real estate that is encumbered by a mortgage, such mortgage lender shall, along with such annual escrow account statement, provide to the owner a notice that such mortgage may be assumable
[
by
in connection with
]
(i) federal loans backed or insured by the Federal Housing Administration, the U.S. Department of Agriculture, or the U.S. Department of Veterans Affairs or (ii) conventional loans under 12 U.S.C. § 1701j-3 of the federal Garn-St. Germain Depository Institutions Act of 1982, P.L.
97-320
.
Such annual notice of potential assumption of a mortgage required by this section shall not be construed to supersede or restrict an owner's right to request or a mortgage lender's requirement to disclose information regarding the terms of assumption pursuant to §
6.2-419
.
[
2. That the provisions of this act shall become effective on January 1, 2027.
]