Effect of mortgage modification

1. For a mortgage modification described in subsection 2: (a) The mortgage continues to secure the obligation as modified; (b) The priority of the mortgage is not affected by the modification; (c) The mortgage retains its priority regardless of whether a record of the mortgage modification is recorded in the land records of a jurisdiction in which the property is located; and (d) The modification is not a novation. 2. Subsection 1 applies to one or more of the following mortgage modifications: (a) An extension of the maturity date of an obligation; (b) A decrease in the interest rate of an obligation; (c) If the change does not result in an increase in the interest rate of an obligation as calculated on the date the modification becomes effective: (1) A change to a different index that is a recognized index if the previous index to which changes in the interest rate were linked is no longer available; (2) A change in the differential between the index and the interest rate; (3) A change from a floating or adjustable rate to a fixed rate; or (4) A change from a fixed rate to a floating or adjustable rate based on a recognized index; (d) A capitalization of unpaid interest or other unpaid monetary obligation; (e) A forgiveness, forbearance or other reduction of principal, accrued interest or other monetary obligation; (f) A modification of a requirement for maintaining an escrow or reserve account for payment of an obligation, including taxes and insurance premiums; (g) A modification of a requirement for acquiring or maintaining insurance; (h) A modification of an existing condition to advance funds; (i) A modification of a financial covenant; and (j) A modification of the payment amount or schedule resulting from another modification described in this subsection. 3. The effect of a mortgage modification not described in subsection 2 is governed by other law.