Uniform mortgage mod. act

AN ACT Relating to the uniform mortgage modification act; and 1
adding a new chapter to Title 61 RCW. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. SHORT TITLE. This chapter may be known and 4
cited as the uniform mortgage modification act.5
NEW SECTION. Sec. 2. DEFINITIONS. The definitions in this 6
section apply throughout this chapter unless the context clearly 7
requires otherwise.8
(1) "Electronic" means relating to technology having electrical, 9
digital, magnetic, wireless, optical, electromagnetic, or similar 10
capabilities. 11
(2) "Financial covenant" means an undertaking to demonstrate an 12
obligor's creditworthiness or the adequacy of security provided by an 13
obligor. 14
(3) "Modification" includes change, amendment, revision, 15
correction, addition, supplementation, elimination, waiver, and 16
restatement. 17
(4) "Mortgage": 18
Z-0412.1
SENATE BILL 5831
State of Washington 69th Legislature 2026 Regular Session
By Senators Dozier, Pedersen, Kauffman, Nobles, Riccelli, Shewmake,
and J. Wilson; by request of Uniform Law Commission
Prefiled 12/04/25. Read first time 01/12/26. Referred to Committee
on Business, Trade & Economic Development.
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(a) Means an agreement that creates a consensual interest in real 1
property to secure payment or performance of an obligation, 2
regardless of: 3
(i) How the agreement is denominated, including a mortgage, deed 4
of trust, trust deed, security deed, indenture, and deed to secure 5
debt; and 6
(ii) Whether the agreement also creates a security interest in 7
personal property; and 8
(b) Does not include an agreement that creates a consensual 9
interest to secure a liability owed by a unit owner to a condominium 10
association, owners' association, or cooperative housing association 11
for association dues, fees, or assessments. 12
(5) "Mortgage modification" means modification of:13
(a) A mortgage; 14
(b) An agreement that creates an obligation, including a 15
promissory note, loan agreement, or credit agreement; or16
(c) An agreement that creates other security or credit 17
enhancement for an obligation, including an assignment of leases or 18
rents or a guaranty. 19
(6) "Obligation" means a debt, duty, or other liability, secured 20
by a mortgage. 21
(7) "Obligor" means a person that: 22
(a) Owes payment or performance of an obligation;23
(b) Signs a mortgage; or 24
(c) Is otherwise accountable, or whose property serves as 25
collateral, for payment or performance of an obligation.26
(8) "Person" means an individual, estate, business or nonprofit 27
entity, government or governmental subdivision, agency, or 28
instrumentality, or other legal entity. 29
(9) "Recognized index" means an index to which changes in the 30
interest rate may be linked that is: 31
(a) Readily available to, and verifiable by, the obligor; and32
(b) Beyond the control of the person to whom the obligation is 33
owed. 34
(10) "Record," used as a noun, means information:35
(a) Inscribed on a tangible medium; or 36
(b) Stored in an electronic or other medium and retrievable in 37
perceivable form. 38
(11) "Sign" means, with present intent to authenticate or adopt a 39
record: 40
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(a) Execute or adopt a tangible symbol; or 1
(b) Attach to or logically associate with the record an 2
electronic symbol, sound, or process. 3
NEW SECTION. Sec. 3. SCOPE. (1) Except as provided in 4
subsection (2) of this section, this chapter applies to a mortgage 5
modification.6
(2) This chapter does not affect: 7
(a) Law governing the required content of a mortgage;8
(b) A statute of limitations or other law governing the 9
expiration or termination of a right to enforce an obligation or a 10
mortgage; 11
(c) A recording statute; 12
(d) A statute governing the priority of a tax lien or other 13
governmental lien; 14
(e) A statute of frauds or chapter 1.80 RCW; or15
(f) Except as provided in section 4 (2)(h) of this act, law 16
governing the priority of a future advance. 17
(3) This chapter does not apply to any of the following 18
modifications: 19
(a) A release of, or addition to, property encumbered by a 20
mortgage; 21
(b) A release of, addition of, or other change in an obligor; or22
(c) An assignment or other transfer of a mortgage or an 23
obligation. 24
NEW SECTION. Sec. 4. EFFECT OF MORTGAGE MODIFICATION. (1) For a 25
mortgage modification described in subsection (2) of this section:26
(a) The mortgage continues to secure the obligation as modified;27
(b) The priority of the mortgage is not affected by the 28
modification; 29
(c) The mortgage retains its priority regardless of whether a 30
record of the mortgage modification is recorded as provided in 31
chapter 65.08 RCW; and 32
(d) The modification is not a novation. 33
(2) Subsection (1) of this section applies to one or more of the 34
following mortgage modifications: 35
(a) An extension of the maturity date of an obligation to a date 36
no later than: (i) Six years after the maturity date stated in the 37
original mortgage; or (ii) no later than six years after the maturity 38
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date stated in the most recent recorded modification that extends the 1
maturity date; 2
(b) A decrease in the interest rate of an obligation;3
(c) If the change does not result in an increase in the interest 4
rate of an obligation as calculated on the date the modification 5
becomes effective: 6
(i) A change to a different index that is a recognized index if 7
the previous index to which changes in the interest rate were linked 8
is no longer available; 9
(ii) A change in the differential between the index and the 10
interest rate; 11
(iii) A change from a floating or adjustable rate to a fixed 12
rate; or 13
(iv) A change from a fixed rate to a floating or adjustable rate 14
based on a recognized index; 15
(d) A capitalization of unpaid interest or other unpaid monetary 16
obligation; 17
(e) A forgiveness, forbearance, or other reduction of principal, 18
accrued interest, or other monetary obligation; 19
(f) A modification of a requirement for maintaining an escrow or 20
reserve account for payment of an obligation, including taxes and 21
insurance premiums; 22
(g) A modification of a requirement for acquiring or maintaining 23
insurance; 24
(h) A modification of an existing condition to advance funds;25
(i) A modification of a financial covenant; and26
(j) A modification of the payment amount or schedule resulting 27
from another modification described in this subsection.28
(3) The effect of a mortgage modification not described in 29
subsection (2) of this section is governed by other law.30
NEW SECTION. Sec. 5. UNIFORMITY OF APPLICATION AND 31
CONSTRUCTION. In applying and construing this uniform act, a court 32
shall consider the promotion of uniformity of the law among 33
jurisdictions that enact it.34
NEW SECTION. Sec. 6. RELATION TO ELECTRONIC SIGNATURES IN 35
GLOBAL AND NATIONAL COMMERCE ACT. This chapter modifies, limits, or 36
supersedes the electronic signatures in global and national commerce 37
act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or 38
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supersede 15 U.S.C. Sec. 7001 (c), or authorize electronic delivery of 1
any of the notices described in 15 U.S.C. Sec. 7003(b).2
NEW SECTION. Sec. 7. TRANSITIONAL PROVISION. This chapter 3
applies to a mortgage modification made on or after the effective 4
date of this section regardless of when the mortgage or the 5
obligation was created.6
NEW SECTION. Sec. 8. SEVERABILITY. If any provision of this act 7
or its application to any person or circumstance is held invalid, the 8
remainder of the act or the application of the provision to other 9
persons or circumstances is not affected.10
NEW SECTION. Sec. 9. CODIFICATION. Sections 1 through 7 of this 11
act constitute a new chapter in Title 61 RCW.12
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