HB 1089: Uniform Mortgage Modification Act - Colorado

Rerevised → Final Act · 4 edits · Apr 13, 2026

MODERATE

This bill enacts the 'Uniform Mortgage Modification Act' to standardize how mortgage terms can be legally changed. It clarifies that modifications do not reset the loan's priority or create a new debt obligation, providing stability for borrowers and lenders. The act specifically covers changes like interest rate adjustments, maturity extensions, and principal forgiveness while excluding certain scenarios like releasing property from the lien.

Scope change

The bill introduces a new Article 40.5 in Title 38 of the Colorado Revised Statutes, creating a dedicated legal framework for mortgage modifications that was previously absent.

DEFINITION

Added precise legal definitions for terms such as 'modification,' 'obligor,' 'recognized index,' and 'electronic' to ensure consistent interpretation across the state.

ELIGIBILITY

Established specific criteria for what constitutes a covered modification, including interest rate decreases, maturity extensions, and principal reductions, while explicitly excluding changes that release or add property to the mortgage.

ENFORCEMENT

Clarified that a mortgage modification does not affect the original mortgage's priority or constitute a novation (a new agreement replacing the old one), ensuring the original loan terms regarding collateral priority remain intact.

REQUIREMENT

Included provisions regarding electronic signatures and records, allowing digital methods to be used for mortgage modifications while addressing compatibility with federal electronic commerce laws.

Revised → Rerevised · 2 edits · Mar 31, 2026

MINOR

The bill was re-revised to include all amendments adopted in the Second House, updating the Senate sponsorship list to reflect new co-sponsors. Additionally, the text of the bill was significantly shortened by removing a section that listed specific areas of law (such as statutes of limitations and recording statutes) that the bill does not affect.

Scope change

The bill's scope was narrowed by removing explicit exclusions regarding statutes of limitations, recording statutes, and governmental lien priorities, though the core applicability to mortgage modifications remains unchanged.

TECHNICAL

The title page was updated from 'Revised' to 'Rerevised' and the Senate sponsorship list was expanded to include five new co-sponsors.

SCOPE

A subsection listing specific laws (including statutes of limitations and recording statutes) that the bill does not affect was deleted, simplifying the bill's text.

Reengrossed → Revised · 4 edits · Mar 30, 2026

MODERATE

The bill text has been updated from 'Reengrossed' to 'Revised' to reflect amendments adopted during the second reading in the second house. The document now includes specific reading dates (March 30, 2026 for the Senate and March 11, 2026 for the House) and displays a new '2nd Reading Unamended' status marker. While the provided snippet shows the removal of specific legal exclusions regarding statutes of frauds and certain mortgage modifications, the primary visible changes are administrative updates to the bill's versioning and legislative history.

Scope change

The bill's substantive scope regarding mortgage modifications remains defined by the text, but the versioning indicates it has progressed through the legislative process with new amendments incorporated.

TECHNICAL

The bill header was changed from 'REENGROSSED' to 'REVISED' to indicate it includes amendments adopted on second reading in the second house.

TIMELINE

A specific date of March 30, 2026 was added to indicate when the Senate version was finalized.

The House reading date was updated to March 11, 2026, and the reading status was clarified as '2nd Reading Unamended'.

REQUIREMENT

Specific exclusions regarding statutes of frauds and certain mortgage modifications were removed from the text, altering the list of modifications to which the article does not apply.

Engrossed → Reengrossed · 3 edits · Mar 11, 2026

MINOR

The bill was reengrossed to add new sponsors to the House and update the bill summary to reflect a future date of March 11, 2026. The text also removed a specific section detailing the legal effect of mortgage modifications, likely to simplify the document or prepare for further amendments.

Scope change

The bill's substantive scope regarding mortgage modifications appears to have been reduced by removing the specific section on their legal effect, while sponsorship and summary metadata were updated.

TECHNICAL

Added new House sponsors (Bacon, Carter, Duran) to the bill's sponsorship list.

Updated the bill summary header to include the date March 11, 2026, and clarified that the summary applies to the unamended version.

REQUIREMENT

Deleted the text defining the legal effect of mortgage modifications, which previously stated that a modified mortgage continues to secure the obligation as modified.

Introduced → Engrossed · 3 edits · Mar 10, 2026

MINOR

The bill was formally adopted as an engrossed version and updated with a future effective date of March 10, 2026. Substantively, the text was reorganized to clarify that the mortgage priority rules apply specifically to certain modifications, such as interest rate decreases or maturity extensions, while explicitly excluding statutes of limitations from these priority rules.

Scope change

The bill's scope was refined to clarify that the priority of a mortgage is not affected by specific modifications like interest rate decreases or maturity extensions, but this rule does not alter existing statutes of limitations.

TIMELINE

Added a specific effective date of March 10, 2026, to the bill text.

REQUIREMENT

Reorganized the list of mortgage modifications to which the priority rules apply, explicitly listing interest rate decreases and maturity extensions.

DEFINITION

Clarified that the priority rules do not affect statutes of limitations or laws governing the expiration of rights to enforce obligations.

Uniform Mortgage Modification Act

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