Uniform Mortgage Modification Act

Homeowners get clearer rules for mortgage changes

Colorado’s law keeps covered mortgage changes from ending the lender’s claim against the property or changing its priority. The mortgage secures the changed debt, even without recording the change, and the change does not replace the original obligation. Covered changes include longer loan terms, lower rates, adding unpaid amounts to principal, and debt forgiveness, forbearance, or reductions. They also include changes to escrow, insurance, existing conditions for future advances, financial promises, and resulting payment amounts or schedules. Specified changes to a rate index or rate structure cannot raise the rate on the modification’s effective date. When an unavailable index is replaced, the new index must be readily available and checkable by the borrower. It must also be outside the control of the person owed the money. These rules do not require lenders to offer payment relief. Adding or releasing property, changing borrowers, and transferring mortgages or debts remain governed by other law. Tax and government lien priority, recording requirements, enforcement deadlines, and specified future-advance rules remain unchanged. Required mortgage contents and rules requiring written agreements also remain unchanged. Electronic records and signatures are recognized, while specified federal protections and limits on electronic notices remain intact. The scheduled start is August 12, 2026, based on final legislative adjournment on May 13, 2026. A referendum petition delays effectiveness unless voters approve the law in November 2026 and the governor declares the result. The law covers modifications made on or after its effective date, including changes to older loans.