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.