Nevada has enacted the Uniform Mortgage Modification Act (“UMMA”) with the passage of Assembly Bill 192 (“A.B. 192”). The UMMA establishes safe harbor provisions for several types of mortgage modifications and sets forth the effect of a mortgage modification on a mortgage.
The UMMA specifies the types of modifications to which A.B. 192 does and does not apply. For loan modifications that do fall under the UMMA:
- The mortgage continues to secure the obligation as modified;
- The priority of the mortgage is not affected by the modification;
- The mortgage retains its priority even if the modification is not recorded in the land records of the jurisdiction in which the property is located; and
- The modification is not considered a novation.
The categories of modification to which the UMMA applies includes:
- An extension of the maturity date of the obligation;
- A decrease in the interest rate;
- Certain changes in the methods of calculating interest which do not result in an increase in the interest rate calculated on the date the modification becomes effective;
- A capitalization of interest or other unpaid monetary obligations;
- A forgiveness, forbearance or other reduction of a secured debt or other monetary obligation;
- A modification of a requirement for maintaining certain escrow or reserve accounts;
- A modification of a requirement for acquiring or maintaining insurance;
- A modification of an existing condition to advance funds;
- A modification of a financial covenant; and
- A modification of the payment amount or schedule resulting from another modification to which the act applies.
Modifications which are outside the scope of the UMMA remain governed by existing law applicable to those modifications. A.B. 192 does not affect existing law governing the required content of a mortgage, statutes of limitation, recording, priority of certain liens, certain electronic transactions or the priority of certain future advances.
The UMMA will add a new chapter to Title 9 of the Nevada Revised Statutes and applies to mortgage modifications made on or after October 1, 2025.