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B 26-0448

Uniform Mortgage Modification Act of 2025

26th Council Period (2025-2026) Introduced by Phil Mendelson

The Uniform Mortgage Modification Act of 2025 streamlines mortgage modifications, helping borrowers avoid foreclosure while protecting lenders and junior lienholders.

Notice of Intent to Act on B26-0448 Published in the District of Columbia Register
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Bill Summary · B 26-0448

Summary of Bill B 26-0448: Uniform Mortgage Modification Act of 2025

Introduction

The Uniform Mortgage Modification Act of 2025 (B 26-0448) aims to streamline the process of modifying mortgages in the District of Columbia. By establishing clear guidelines and "safe harbor" provisions, the bill seeks to facilitate mortgage modifications that allow borrowers to avoid foreclosure while maintaining their existing mortgage relationships.

Purpose and Intent

The primary intent of the bill is to:
- Facilitate Mortgage Modifications: Enable borrowers to modify their mortgages without the need for foreclosure.
- Protect Borrowers: Provide protections for both residential and commercial mortgage holders.
- Reduce Legal Uncertainties: Eliminate ambiguities in the modification process, thereby saving time and money for borrowers.

Key Provisions

The bill introduces several important provisions, including:

  1. Safe Harbor Modifications:

    • Establishes specific types of modifications that are protected under the law, ensuring that they do not adversely affect junior lienholders.
    • Modifications include changes to interest rates, maturity dates, and payment schedules.

  2. Retention of Mortgage Priority:

    • The act ensures that modifications do not affect the priority of the mortgage, meaning that the mortgage remains secured as modified, regardless of whether the modification is recorded.

  3. Definitions:

    • Provides clear definitions for terms such as "modification," "mortgage," "obligation," and "obligor," which are essential for understanding the scope and application of the law.

  4. Exclusions:

    • Specifies modifications that are not covered by the act, such as releases or additions to property encumbered by a mortgage or changes in obligors.

  5. Uniformity:

    • Aims for consistent application of the law across jurisdictions, as the act has already been enacted in states like Utah and Nevada.

Who Would Be Affected?

  • Borrowers: Homeowners and businesses with existing mortgages will benefit from clearer modification processes.
  • Lenders: Financial institutions will have a standardized framework for handling mortgage modifications, potentially reducing litigation risks.
  • Junior Lienholders: The act provides protections for junior lienholders by excluding modifications that materially prejudice their interests.

Procedural Aspects

  • Introduced: October 30, 2025, by Chairman Phil Mendelson.
  • Referred to Committee: The bill was referred to the Committee on Business and Economic Development on November 4, 2025.
  • Notice of Intent: Published in the District of Columbia Register on November 7, 2025.

Conclusion

The Uniform Mortgage Modification Act of 2025 represents a significant step towards modernizing mortgage modification processes in the District of Columbia. By providing clear guidelines and protections, the bill aims to assist borrowers in navigating financial difficulties while preserving the integrity of mortgage agreements.

Compiled from official sources — confirm details with the bill’s official record.

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