Section 443.923

Title XXIX OWNERSHIP AND CONVEYANCE OF PROPERTY

Chapter 443

Effective - 28 Aug 2026, see footnote   

  443.923.  Effect of mortgage modification. — 1.  For a mortgage modification described in subsection 2 of this section:

  (1)  The mortgage continues to secure the obligation as modified;

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

  (3)  The mortgage retains its priority regardless of whether a record of the mortgage modification is recorded in the public land records; and

  (4)  The modification is not a novation.

  2.  Subsection 1 of this section applies to one or more of the following mortgage modifications:

  (1)  An extension of the maturity date of an obligation;

  (2)  A decrease in the interest rate of an obligation;

  (3)  If the change does not result in an increase in the interest rate of an obligation as calculated on the date the modification becomes effective:

  (a)  A change to a different index that is a recognized index if the previous index to which changes in the interest rate were linked is no longer available;

  (b)  A change in the differential between the index and the interest rate;

  (c)  A change from a floating or adjustable rate to a fixed rate; or

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

  (4)  A capitalization of unpaid interest or other unpaid monetary obligation;

  (5)  A forgiveness, forbearance, or other reduction of principal, accrued interest, or other monetary obligation;

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

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

  (8)  A modification of an existing condition to advance funds;

  (9)  A modification of a financial covenant; and

  (10)  A modification of the payment amount or schedule resulting from another modification described in this subsection.

  3.  The effect of a mortgage modification not described in subsection 2 of this section is governed by other law.

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(L. 2026 H.B. 2636 merged with S.B. 834)

Severability clause, see §§ 1.1004 and 443.927