Bill > SB5831

This bill enacts the Uniform Mortgage Modification Act, which provides a comprehensive framework for modifying mortgages and related financial agreements. The legislation defines key terms like "mortgage," "modification," and "obligor," and establishes rules for how mortgage modifications can be made without affecting the original mortgage's priority or creating a new legal agreement (novation). Specifically, the bill allows for modifications such as extending maturity dates (up to six years), decreasing interest rates, changing interest rate indexes, capitalizing unpaid interest, forgiving or reducing principal, modifying escrow requirements, adjusting insurance conditions, and changing payment schedules. The act applies to mortgage modifications made on or after its effective date and aims to provide uniformity in how such modifications are handled across jurisdictions. Importantly, the bill does not change laws related to mortgage content, statutes of limitations, recording requirements, or governmental liens, and it specifically excludes modifications that involve adding or releasing property or obligors from the mortgage. The legislation also includes provisions related to electronic signatures and ensures that if any part of the act is found invalid, the rest of the act remains in effect.

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https://app.leg.wa.gov/billsummary?BillNumber=5831&Year=2025&Initiative=false