Senate Bill 5831 - Uniform Mortgage Modification Act (Washington, 2026 Regular Session)

Summary

Senate Bill 5831, State of Washington, 69th Legislature, 2026 Regular Session, by Senators Dozier, Pedersen, and Kauffman among the sponsors, by request of Uniform Law Commission. It was prefiled 12/04/25, read first time 01/12/26 and referred to the Committee on Business, Trade & Economic Development. The bill adds a new chapter to Title 61 RCW that may be cited as the uniform mortgage modification act, with definitions of terms such as mortgage and mortgage modification. It addresses uniformity of application, its relation to the electronic signatures in global and national commerce act, and a transitional provision applying to a mortgage modification made on or after the effective date of that section.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

     Z-0412.1

                               SENATE BILL 5831


     State of Washington       69th Legislature       2026 Regular Session

     By Senators Dozier, Pedersen, Kauffman, Nobles, Riccelli, Shewmake,
     and J. Wilson; by request of Uniform Law Commission

     Prefiled 12/04/25. Read first time 01/12/26.    Referred to Committee
     on Business, Trade & Economic Development.




1        AN ACT Relating to the uniform mortgage modification act; and
2    adding a new chapter to Title 61 RCW.


3    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


4        NEW SECTION. Sec. 1. SHORT TITLE. This chapter may be known and
5    cited as the uniform mortgage modification act.


 6       NEW SECTION.    Sec. 2.    DEFINITIONS. The definitions in this
 7   section apply throughout this chapter unless the context clearly
 8   requires otherwise.
 9       (1) "Electronic" means relating to technology having electrical,
10   digital, magnetic, wireless, optical, electromagnetic, or similar
11   capabilities.
12       (2) "Financial covenant" means an undertaking to demonstrate an
13   obligor's creditworthiness or the adequacy of security provided by an
14   obligor.
15       (3)   "Modification"   includes   change,  amendment,   revision,
16   correction, addition, supplementation, elimination, waiver, and
17   restatement.
18       (4) "Mortgage":



                                     p. 1                           SB 5831
 1       (a) Means an agreement that creates a consensual interest in real
 2   property to secure payment or performance of an obligation,
 3   regardless of:
 4       (i) How the agreement is denominated, including a mortgage, deed
 5   of trust, trust deed, security deed, indenture, and deed to secure
 6   debt; and
 7       (ii) Whether the agreement also creates a security interest in
 8   personal property; and
 9       (b) Does not include an agreement that creates a consensual
10   interest to secure a liability owed by a unit owner to a condominium
11   association, owners' association, or cooperative housing association
12   for association dues, fees, or assessments.
13       (5) "Mortgage modification" means modification of:
14       (a) A mortgage;
15       (b) An agreement that creates an obligation, including a
16   promissory note, loan agreement, or credit agreement; or
17       (c) An agreement that creates other security or credit
18   enhancement for an obligation, including an assignment of leases or
19   rents or a guaranty.
20       (6) "Obligation" means a debt, duty, or other liability, secured
21   by a mortgage.
22       (7) "Obligor" means a person that:
23       (a) Owes payment or performance of an obligation;
24       (b) Signs a mortgage; or
25       (c) Is otherwise accountable, or whose property serves as
26   collateral, for payment or performance of an obligation.
27       (8) "Person" means an individual, estate, business or nonprofit
28   entity,   government   or   governmental   subdivision,   agency,  or
29   instrumentality, or other legal entity.
30       (9) "Recognized index" means an index to which changes in the
31   interest rate may be linked that is:
32       (a) Readily available to, and verifiable by, the obligor; and
33       (b) Beyond the control of the person to whom the obligation is
34   owed.
35       (10) "Record," used as a noun, means information:
36       (a) Inscribed on a tangible medium; or
37       (b) Stored in an electronic or other medium and retrievable in
38   perceivable form.
39       (11) "Sign" means, with present intent to authenticate or adopt a
40   record:
                                     p. 2                          SB 5831
1        (a) Execute or adopt a tangible symbol; or
2        (b) Attach to or logically associate         with   the   record   an
3    electronic symbol, sound, or process.


 4       NEW SECTION.     Sec. 3.     SCOPE. (1) Except as provided in
 5   subsection (2) of this section, this chapter applies to a mortgage
 6   modification.
 7       (2) This chapter does not affect:
 8       (a) Law governing the required content of a mortgage;
 9       (b) A statute of limitations or other law governing the
10   expiration or termination of a right to enforce an obligation or a
11   mortgage;
12       (c) A recording statute;
13       (d) A statute governing the priority of a tax lien or other
14   governmental lien;
15       (e) A statute of frauds or chapter 1.80 RCW; or
16       (f) Except as provided in section 4(2)(h) of this act, law
17   governing the priority of a future advance.
18       (3) This chapter does not apply to any of the following
19   modifications:
20       (a) A release of, or addition to, property encumbered by a
21   mortgage;
22       (b) A release of, addition of, or other change in an obligor; or
23       (c) An assignment or other transfer of a mortgage or an
24   obligation.


25       NEW SECTION. Sec. 4. EFFECT OF MORTGAGE MODIFICATION. (1) For a
26   mortgage modification described in subsection (2) of this section:
27       (a) The mortgage continues to secure the obligation as modified;
28       (b) The priority of the mortgage is not affected by the
29   modification;
30       (c) The mortgage retains its priority regardless of whether a
31   record of the mortgage modification is recorded as provided in
32   chapter 65.08 RCW; and
33       (d) The modification is not a novation.
34       (2) Subsection (1) of this section applies to one or more of the
35   following mortgage modifications:
36       (a) An extension of the maturity date of an obligation to a date
37   no later than: (i) Six years after the maturity date stated in the
38   original mortgage; or (ii) no later than six years after the maturity
                                     p. 3                             SB 5831
 1   date stated in the most recent recorded modification that extends the
 2   maturity date;
 3       (b) A decrease in the interest rate of an obligation;
 4       (c) If the change does not result in an increase in the interest
 5   rate of an obligation as calculated on the date the modification
 6   becomes effective:
 7       (i) A change to a different index that is a recognized index if
 8   the previous index to which changes in the interest rate were linked
 9   is no longer available;
10       (ii) A change in the differential between the index and the
11   interest rate;
12       (iii) A change from a floating or adjustable rate to a fixed
13   rate; or
14       (iv) A change from a fixed rate to a floating or adjustable rate
15   based on a recognized index;
16       (d) A capitalization of unpaid interest or other unpaid monetary
17   obligation;
18       (e) A forgiveness, forbearance, or other reduction of principal,
19   accrued interest, or other monetary obligation;
20       (f) A modification of a requirement for maintaining an escrow or
21   reserve account for payment of an obligation, including taxes and
22   insurance premiums;
23       (g) A modification of a requirement for acquiring or maintaining
24   insurance;
25       (h) A modification of an existing condition to advance funds;
26       (i) A modification of a financial covenant; and
27       (j) A modification of the payment amount or schedule resulting
28   from another modification described in this subsection.
29       (3) The effect of a mortgage modification not described in
30   subsection (2) of this section is governed by other law.


31       NEW   SECTION.     Sec.  5.    UNIFORMITY OF   APPLICATION AND
32   CONSTRUCTION. In applying and construing this uniform act, a court
33   shall consider the promotion of uniformity of the law among
34   jurisdictions that enact it.


35       NEW SECTION.    Sec. 6.   RELATION TO ELECTRONIC SIGNATURES IN
36   GLOBAL AND NATIONAL COMMERCE ACT. This chapter modifies, limits, or
37   supersedes the electronic signatures in global and national commerce
38   act, 15 U.S.C. Sec. 7001 et seq., but does not modify, limit, or
                                     p. 4                          SB 5831
 1   supersede 15 U.S.C. Sec. 7001(c), or authorize electronic delivery of
 2   any of the notices described in 15 U.S.C. Sec. 7003(b).


 3       NEW SECTION.    Sec. 7.   TRANSITIONAL PROVISION. This chapter
 4   applies to a mortgage modification made on or after the effective
 5   date of this section regardless of when the mortgage or the
 6   obligation was created.

 7       NEW SECTION. Sec. 8. SEVERABILITY. If any provision of this act
 8   or its application to any person or circumstance is held invalid, the
 9   remainder of the act or the application of the provision to other
10   persons or circumstances is not affected.

11       NEW SECTION. Sec. 9. CODIFICATION. Sections 1 through 7 of this
12   act constitute a new chapter in Title 61 RCW.

                                  --- END ---




                                     p. 5                          SB 5831


File and source

File

2026-01-21_a33649_bill_5831.pdf

Size

76,846 bytes

SHA-256

ce9eb55288df360fb4239def2448021dfeceb424270a50810199d28387b2675f

Our copy

2026-01-21_a33649_bill_5831.pdf

Original

No public link identified.