This bill authorizes mortgage porting, which is the process by which a mortgagor transfers the terms, outstanding balance and interest rate of an existing mortgage loan secured against a single-family dwelling or a dwelling that consists of no more than 4 units that is the principal residence of the mortgagor to another principal residence. The bill provides that a mortgagor is eligible for mortgage porting from a lender if the mortgagor has maintained the mortgagor's existing mortgage loan in good standing; the mortgagor meets the lender's appraisal and underwriting criteria; and the transfer is executed within 6
41 months from the sale of the previous principal residence of the mortgagor. The bill requires
42 that, upon approval of mortgage porting, a lender must transfer the outstanding balance,
43 interest rate and terms of the existing mortgage loan to the new mortgage loan and also
44 requires that any additional funds needed to purchase the new principal residence must be
45 financed at current market rates, although a lender must provide the option for a blended
46 interest rate for the new mortgage loan.