SF 31

This bill adopts the Uniform Mortgage Modification Act. The bill establishes rules for modifying mortgages and related obligations, effective for modifications made on or after July 1, 2026. It defines key terms such as "mortgage," "modification," and "obligation" and specifies that the act applies to certain types of mortgage modifications, such as changes to interest rates, payment schedules, or financial covenants. The act ensures that a mortgage retains its priority and continues to secure the obligation after a mortgage modification, without requiring re-recording. However, it excludes certain modifications, such as property releases or transfers of mortgages, from the scope of the act. The act applies to a mortgage modification made on or after July 1, 2026 regardless of when the mortgage or obligation was created.