Committee unanimously advances Uniform Mortgage Modification Act to clarify loan changes
March 25, 2026 | 2026 Legislature CO, Colorado
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The Senate Judiciary Committee on Wednesday advanced House Bill 10‑89 on a unanimous voice/roll vote, endorsing a Uniform Mortgage Modification Act designed to provide legal certainty for common mortgage modifications and encourage lenders to offer workable alternatives to foreclosure.
Senator Snyder, the bill’s sponsor, told the committee the act creates safe harbors for roughly 10 common modification types and makes explicit that such modifications do not impair lien priority or materially prejudice other lienholders. “It doesn’t do anything to affect the priority or any way affect the material interest, specifically the financial interest of other lien holders,” the sponsor said.
Julie Rogers, the reporter for the Uniform Mortgage Modification Act and a law professor, explained that safe‑harbor modifications commonly include extending loan maturity, reducing the interest rate, capitalizing unpaid interest or escrow advances, and limited debt forgiveness. For modifications within the safe harbor, Rogers said, the mortgage continues to secure the obligation as modified and priority is preserved even if the modification agreement is not recorded.
Seth Holly, in‑house counsel testifying for the Colorado Bar Association, described the drafting as narrowly tailored to preserve junior lienholders’ rights and to complement existing Colorado statutes. Committee members praised the stakeholder process and observed the bill’s potential to reduce transaction costs and make lenders more willing to consider reasonable modifications.
Senators noted the law does not require recording modified agreements to preserve priority for safe‑harbor changes, but Rogers said recording may still be appropriate — particularly when maturity is extended — because Colorado’s statute of limitations provisions tie to recorded maturity dates.
After discussion, the committee voted 6–0 to advance HB 10‑89 to the Committee of the Whole and placed the bill on the consent calendar.
Senator Snyder, the bill’s sponsor, told the committee the act creates safe harbors for roughly 10 common modification types and makes explicit that such modifications do not impair lien priority or materially prejudice other lienholders. “It doesn’t do anything to affect the priority or any way affect the material interest, specifically the financial interest of other lien holders,” the sponsor said.
Julie Rogers, the reporter for the Uniform Mortgage Modification Act and a law professor, explained that safe‑harbor modifications commonly include extending loan maturity, reducing the interest rate, capitalizing unpaid interest or escrow advances, and limited debt forgiveness. For modifications within the safe harbor, Rogers said, the mortgage continues to secure the obligation as modified and priority is preserved even if the modification agreement is not recorded.
Seth Holly, in‑house counsel testifying for the Colorado Bar Association, described the drafting as narrowly tailored to preserve junior lienholders’ rights and to complement existing Colorado statutes. Committee members praised the stakeholder process and observed the bill’s potential to reduce transaction costs and make lenders more willing to consider reasonable modifications.
Senators noted the law does not require recording modified agreements to preserve priority for safe‑harbor changes, but Rogers said recording may still be appropriate — particularly when maturity is extended — because Colorado’s statute of limitations provisions tie to recorded maturity dates.
After discussion, the committee voted 6–0 to advance HB 10‑89 to the Committee of the Whole and placed the bill on the consent calendar.
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