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UT HB0440

UT HB0440
Uniform Mortgage Modification Act


summary

Introduced
02/07/2025
In Committee
02/28/2025
Crossed Over
02/21/2025
Passed
Dead
03/07/2025

Introduced Session

2025 General Session

Bill Summary

General Description: This bill provides for modifications that may be made to recorded mortgages and obligations.

AI Summary

This bill introduces the Uniform Mortgage Modification Act for Utah, providing a comprehensive framework for how mortgages can be modified without losing their original legal priority or requiring complete refinancing. The bill establishes clear definitions for key terms like "mortgage," "modification," and "electronic record," and outlines the specific types of mortgage changes that can be made without altering the original mortgage's fundamental legal characteristics. These permissible modifications include extending the maturity date, decreasing interest rates, changing interest rate indexes, capitalizing unpaid interest, forgiving or reducing principal, modifying escrow or insurance requirements, and adjusting financial covenants. Importantly, the bill specifies that these modifications will not constitute a "novation" (creating an entirely new legal agreement) and will not affect the mortgage's original priority, even if the modification is not formally recorded. The act will apply to mortgage modifications made on or after May 7, 2025, and is designed to provide clarity and consistency in how mortgage alterations are handled, with the goal of promoting uniformity across jurisdictions that adopt similar legislation. The bill also relates to and slightly modifies the Electronic Signatures in Global and National Commerce Act, ensuring that electronic records and signatures can be used in mortgage modifications while maintaining certain consumer protections.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

House/ filed in House file for bills not passed (on 03/07/2025)

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