70D-4-301. Effect of mortgage modification.

312 words·~1 min read·/ut/title-70d/chapter-4/70d-4-301

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/7/2025

(1)For a mortgage modification described in Subsection (2):

(a)the mortgage continues to secure the obligation as modified;

(b)the priority of the mortgage is not affected by the modification;

(c)the mortgage retains the mortgage's priority regardless of whether a record of the mortgage modification is recorded; and

(d)the modification is not a novation.

(2)Subsection

(1)applies to one or more of the following:

(a)an extension of the maturity date of an obligation;

(b)a decrease in the interest rate of an obligation;

(c)if there is any change as specified in Subsection (2)(c)(i) through

(iv)that does not result in an increase in the interest rate as calculated on the date the modification becomes effective:

(i)a change to a different recognized index if the previous index is no longer available;

(ii)a change in the differential between the index and the interest rate;

(iii)a change from a floating or adjustable rate to a fixed rate; and

(iv)a change from a fixed rate to a floating or adjustable rate based on a recognized index;

(d)a capitalization of unpaid interest or other unpaid obligation;

(e)a forgiveness, forbearance, or other reduction of principal, accrued interest, or other monetary obligation;

(f)a modification of a requirement for maintaining an escrow or reserve account for payment of an obligation, including taxes, insurance premiums, or another obligation;

(g)a modification of a requirement for acquiring or maintaining insurance;

(h)a modification of an existing condition to advance funds;

(i)a modification of a financial covenant; and

(j)a modification of the payment amount or schedule resulting from another modification described in this Subsection

(2).

(3)The effect of a mortgage modification not described in Subsection

(2)is governed by other law.

Enacted by Chapter 482 , 2025 General Session