CaliforniaWildfire borrowers may receive longer mortgage payment pauses
Homeowners with uninhabitable properties damaged by the covered wildfires may request up to 24 months of mortgage payment forbearance, subject to the law’s deadlines and conditions.
What it does
Borrowers whose homes are uninhabitable because of the covered wildfires may request up to 24 months of mortgage payment forbearance, with 90-day extensions.
For requests extending forbearance beyond 12 months, servicers may seek limited repair or hardship records and generally must decide within 21 days; no late fees or default interest apply while borrowers wait.
Servicers must offer eligible borrowers a way to repay deferred mortgage payments at the end of the loan, unless the loan’s governing rules prohibit that option.
Argument forLonger payment pauses could give wildfire-affected homeowners more time to repair uninhabitable homes and recover financially before payments resume.
Argument againstAdditional records for extensions beyond 12 months could make some borrowers provide more hardship or repair information before receiving longer relief.
More detail
A mortgage servicer must offer payment forbearance for up to 24 months in 90-day extensions. This applies to borrowers whose residential mortgage payment hardship is directly caused by the wildfire disaster covered by the January 7, 2025, state emergency proclamation and related federal disaster declaration. The borrower must affirm that the financial hardship is caused by the wildfire disaster. The borrower must also affirm that the property securing the loan is uninhabitable because of the wildfire disaster. A borrower must request forbearance before the earlier of six months after the state emergency ends or January 7, 2029. The maximum total forbearance period is 24 months, including related forbearance granted before this law takes effect.
A mortgage servicer may request additional documents for a forbearance extension beyond 12 months and must generally decide the request within 21 days. The documentation may concern the borrower’s financial hardship, the property’s habitability, or efforts to repair the wildfire damage. The servicer may request documents only after the borrower seeks more than 12 months of total forbearance and an investor, guarantor, insurer, or loan holder has made a written request for reasonably necessary information. The servicer must give the borrower a copy of that written request if the borrower asks for it. The borrower and servicer may agree to extend the 21-day decision period so the borrower can provide documents and the loan holder can approve longer forbearance. While the borrower is waiting for a decision, the servicer may not charge late fees or default interest. The 21-day decision period applies after a forbearance request. If a notice identifies a fixable defect, the borrower has 21 calendar days to correct it, and the servicer must respond within five business days after receiving the revised request.
A mortgage servicer must offer the borrower an option to defer repayment of forborne amounts until the loan ends. This applies to borrowers granted wildfire-related mortgage forbearance under the law. The option may be offered through a loan deferral or a similar loss-mitigation option. The servicer does not have to offer it when the applicable investor contract or servicing guidelines prohibit it. The option must fit within the servicer’s contractual authority. The repayment option applies when the servicer arranges repayment of amounts deferred during the forbearance period and may place repayment at the end of the loan term.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 15Chaptered by Secretary of State - Chapter 242, Statutes of 2026.Latest
- Sep 15Approved by the Governor Gavin Newsom.Became Law
- Aug 31Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 25Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 73. Noes 0. Page 6454.).Major
- Vote recorded AB 1847 Harabedian Concurrence in Senate Amendments. Result: pass.Lower
- Aug 24In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB1847 Harabedian et al. By Grayson. Result: pass.Upper
- Aug 24Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 0.).Passed Senate
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- Aug 13From committee: Amend, and do pass as amended. (Ayes 5. Noes 0.) (August 13).Major
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 1From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (June 30). Re-referred to Com. on APPR.Minor
- Jun 30
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jun 22Read second time and amended. Re-referred to Com. on JUD.Major
- Jun 18From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 17).Major
- Jun 17
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]. Result: pass.Upper
- Jun 3Referred to Coms. on B. & F.I. and JUD.Minor
- May 27In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 1847 Harabedian Assembly Third Reading. Result: pass.Lower
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 49. Noes 18. Page 5364.)Passed Assembly
- May 22Read third time and amended. Ordered to third reading. (Page 5272.)Major
- May 19Read second time. Ordered to third reading.Minor
- May 18Read second time and amended. Ordered returned to second reading.Major
- May 14From committee: Amend, and do pass as amended. (Ayes 10. Noes 4.) (May 14).Major
- Vote recorded Do pass as amended. Result: pass.Lower
- May 6In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 3.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (April 20). Re-referred to Com. on JUD.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 20
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary]. Result: pass.Lower
- Apr 13(Pending re-refer to Com. on JUD.)Minor
- Apr 13Assembly Rule 56 suspended. (Page 4580.)
- Feb 23Referred to Coms. on B. & F. and JUD.Minor
- Feb 12From printer. May be heard in committee March 14.
- Feb 11Read first time. To print.Introduced
HousingConsumer ProtectionEmergency Management