Uniform Mortgage Modification Act of 2025

The Uniform Mortgage Modification Act of 2025 (B 26-0448) creates legal "safe harbors" for mortgage modifications, protecting both residential homeowners and commercial businesses from foreclosure by clarifying that specific changes to mortgages - like adjusted payments - do not affect the mortgage's priority or require recording. It explicitly states that modifications within these safe harbors (e.g., adjusting interest rates or terms) will not be treated as novations, ensuring the mortgage continues to secure the obligation as modified. The bill excludes modifications that materially prejudice junior lienholders and aims to reduce legal uncertainty, saving borrowers time and money. This proposed law aligns with a uniform model already adopted in Utah and Nevada, though it remains a pending District of Columbia bill.