Uniform Mortgage Modification Act

SB 161 establishes West Virginia’s Uniform Mortgage Modification Act, creating standardized rules for modifying residential mortgages. It defines key terms like "mortgage modification" (covering changes to interest rates, maturity dates, or capitalizing unpaid interest) and clarifies that such modifications do not alter a mortgage’s priority or require recording. The bill directly affects homeowners and lenders by ensuring modifications to loan terms (e.g., switching to a fixed rate or adjusting interest rates via a recognized index) remain valid without changing the mortgage’s security position. It excludes modifications involving property releases, changes to obligors, or mortgage assignments, and applies only to changes made on or after the law’s effective date.