Conveyance or assumption; certain restrictions prohibited.

Certain restrictions on conveyance or assumption; prohibited. Prohibits the holder of the obligation secured by a mortgage or deed of trust on certain residential real estate from imposing, agreeing to, or enforcing a legal restriction on conveyance or restriction on the assumption of a residential mortgage or deed of trust. The bill requires a holder, if a mortgage or deed of trust requires approval of the holder for a conveyance or assumption, to approve the sale or transfer of all or part of the encumbered property, or the sale or transfer of a beneficial interest in a trust all or part of the property, if (i) at least one of the people acquiring ownership is determined to be creditworthy under generally accepted mortgage underwriting standards; (ii) the seller retains an ownership interest in the property; or (iii) the transfer is by devise or descent.