Committee advances Uniform Mortgage Modification Act (SB 5831) with due-pass recommendation

The Consumer Protection and Business Committee on Feb. 25 reported Senate Bill 5,831, which would enact the Uniform Mortgage Modification Act, out of committee with a due-pass recommendation.

Staff told members the bill creates statutory 'safe harbors' for specified mortgage modifications — for example, limited extensions of maturity or reductions in interest rates — while preserving a mortgage's priority and the security interest for the lender. Committee staff indicated there were no committee amendments for this item.

Representative McClintock urged members to support the bill, calling it a measure "that's going to be really good for our consumers." Representative Santos, noting that uniform laws can be imperfect, said the bill includes one small modification requested by title companies that he supported and that the change did not alter lien-priority order. The committee took a voice vote; staff later announced 14 members voted in the affirmative and one member was excused. Senate Bill 5,831 was reported out with a due-pass recommendation.

Why it matters: Supporters said the bill clarifies statutory treatment for common mortgage-modification transactions, creating predictability for lenders and borrowers while preserving lien priorities.

What happens next: The measure will move forward with the committee’s due-pass recommendation to the next legislative stage.