The Impetus for the Uniform Mortgage Modification Act stems from the reliance on common law, which often fails to clearly define the effect of mortgage modifications on priority. This uncertainty in priority creates delays and reluctance to modify mortgages because of the high likelihood of litigation, even when the modification is mutually beneficial. To address this issue and enhance the utility and frequency of mortgage modifications, the ULC decided to draft this act, ensuring that mortgage priority is preserved and lenders are more willing to engage in modifications.
