CO HB1089

Enacts the "Uniform Mortgage Modification Act" drafted by the Uniform Law Commission to establish clear rules when mortgages are modified

Preserves mortgage priority when modifications include: extending maturity dates, decreasing interest rates, changing rate indexes, capitalizing unpaid interest, forgiving principal, or modifying escrow/insurance requirements

Mortgage modifications retain priority regardless of whether the modification agreement is recorded with the county clerk

Modifications covered by the act are explicitly not considered a novation, meaning the original mortgage continues to secure the modified obligation

Effective date is August 12, 2026, and applies to modifications made after that date regardless of when the original mortgage was created