CaliforniaDisaster-damaged homeowners would get longer mortgage payment pauses
Homeowners whose homes become unlivable after a federally declared disaster could pause mortgage payments for up to 12 months, subject to eligibility and servicing rules.
What it does
Homeowners whose residences become unlivable because of a federally declared disaster could receive 180 days of mortgage payment relief, with extensions up to 12 months. Late fees and default interest would be barred during the pause.
During disaster-related mortgage relief, servicers would have to report the account as current and could not report that payments were paused.
State and local prosecutors could sue to enforce the mortgage-relief requirements.
Argument forLonger payment pauses and protection from late fees could give disaster-affected homeowners more time to stabilize their housing and finances.
Argument againstBorrowers still owe the paused payments, so relief may delay repayment rather than reduce the total amount owed.
More detail
Mortgage servicers must offer eligible borrowers an initial 180-day payment pause and 90-day extensions, up to 12 months total. This covers a natural person who owns or holds authority for a mortgage on residential property with four or fewer units, when at least one unit became unlivable because of a federally declared disaster. The borrower must affirm that the unit is unlivable because of the disaster. A borrower who surrendered the property, had an unresolved notice of default before the disaster declaration, or was more than 90 days delinquent immediately before the declaration is excluded. The borrower must still repay the paused payments. A servicer is not liable when following applicable servicing guidelines makes compliance impossible, and the law does not require a breach of an investor contract. The borrower must make the initial request within six months after the federal disaster declaration. An extension request must be made before the current forbearance period ends.
Mortgage servicers must report eligible disaster-related mortgage accounts as current during the payment pause. This applies to borrowers whose accounts receive disaster-related mortgage payment relief under the act. Reports must comply with the federal Fair Credit Reporting Act. The servicer may not report that the payments are in forbearance during the relief period. The reporting rules apply throughout the forbearance period.
The Attorney General, a district attorney, or a county counsel may bring a civil action to enforce the act. The enforcement authority covers violations of the mortgage-relief requirements in the act.
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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 241, Statutes of 2026.Latest
- Sep 15Approved by the Governor Gavin Newsom.Became Law
- Sep 3Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 26Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 6636.).Major
- Vote recorded AB 1842 Harabedian Concurrence in Senate Amendments. Result: pass.Lower
- Vote recorded 3rd Reading AB1842 Harabedian et al. By Grayson. Result: pass.Upper
- Aug 26In Assembly. Concurrence in Senate amendments pending.
- Aug 26Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.).Passed Senate
- Aug 19Read second time. Ordered to third reading.Minor
- Aug 18Read third time and amended. Ordered to second reading.Major
- 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 7. 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 13. 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 7. 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 1842 Harabedian Assembly Third Reading. Result: pass.Lower
- May 26Read third time. Passed. Ordered to the Senate. (Ayes 58. Noes 14. Page 5364.)Passed Assembly
- 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 11. Noes 2.) (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 27Re-referred to Com. on APPR.Minor
- Apr 23Read second time and amended.Major
- Apr 22From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 2.) (April 21).Major
- Apr 21From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (April 20). Re-referred to Com. on JUD.Minor
- Vote recorded Do pass as amended 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