A loan modification is an agreement with your lender to change the terms of your loan to make the payment more affordable. A loan modification is an agreement between a lender and a borrower that changes (modifies) the terms of a loan to make the monthly payment more affordable.The dollar amount entered in the first blank in Section I of this Agreement and the consolidated principal amount of the Consolidated Note must be the same. (4). It is a negotiation with your mortgage lender to create a new agreement that modifies the original terms of your mortgage. The dollar amount entered in the first blank in Section I of this Agreement and the consolidated principal amount of the Consolidated Note must be the same. Consolidation, Extension and Modification Agreements (CEMA loans) can help New Yorkers save money when refinancing. The mortgage modification agreement is a legal document between a lender and borrower to change an existing loan's terms. FHA Refinance Option. A loan modification agreement used when a borrower is not in default to amend the terms of a commercial real estate loan in New York. To obtain a modification a homeowner needs to apply to their lender who will send them an application.