CaliforniaMortgage forbearance: state of emergency: wildfire.
What it does
Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency.
More detail
This bill would authorize a borrower who is experiencing financial hardship that prevents the borrower from making timely payments on a specified residential mortgage loan due directly to the wildfire disaster described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025, or the federally declared disaster, declared on January 8, 2025, related to the Eaton Wildfire, the Palisades Fire, and the Straight-line Winds, to request forbearance on their residential mortgage loan, as prescribed. The bill would limit eligibility for that forbearance to loans that are secured by residential real property improved by 4 or fewer residential units. The bill would require the borrower to affirm that they are experiencing a financial hardship due to the wildfire disaster. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program.
This bill would, except as specified, require a mortgage servicer to offer mortgage payment forbearance of a period of up to an initial 90 days, which shall be extended at the request of the borrower in 90-day increments, up to a maximum forbearance period of 12 months. The bill would also prohibit a mortgage servicer from assessing any late fees to the borrower's account or charging a default rate of interest during the forbearance period. The bill would provide that the forbearance period includes any period of forbearance related to the wildfire disaster that a mortgage servicer has provided to a borrower before the effective date of these provisions. The bill would require a mortgage servicer to report the credit obligations of borrowers under a disaster-related forbearance plan in compliance with the federal Fair Credit Reporting Act. For accounts granted disaster-related mortgage payment relief, the bill would prohibit mortgage servicers from furnishing information during the forbearance period indicating that the payments are in forbearance and would require them to report the credit obligation or account as current or delinquent, as specified. The bill would prohibit a mortgage servicer from initiating any judicial or nonjudicial foreclosure process, moving for a foreclosure judgment or order of sale, or executing a foreclosure-related eviction or foreclosure during the period of forbearance.
This bill would require the Department of Financial Protection and Innovation to post specified information on its website including links to the provisions of servicing guidelines pertaining to disaster-related forbearance relief for federally backed loans and a dedicated telephone number for borrowers seeking assistance.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would declare that it is to take effect immediately as an urgency statute.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Sep 22Chaptered by Secretary of State - Chapter 128, Statutes of 2025.Latest
- Sep 22Approved by the Governor Gavin Newsom.Became Law
- Sep 4Enrolled and presented to the Governor at 4 p.m.To Governor
- Sep 3Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 2855.).Major
- Vote recorded AB 238 Harabedian Concurrence in Senate Amendments. Result: pass.Lower
- Sep 2In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB238 Harabedian et al. By Grayson Urgency Clause. Result: pass.Upper
- Sep 2Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 40. Noes 0. Page 2390.).Passed Senate
- Jul 15Read second time. Ordered to third reading.Minor
- Jul 14From committee: Do pass. (Ayes 7. Noes 0.) (July 14).Minor
- Vote recorded Do pass. Result: pass.Upper
- Jul 10From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR.Major
- Jun 26Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 25From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (June 24).Major
- Jun 24
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 18From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 18). Re-referred to Com. on JUD.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Judiciary]. Result: pass.Upper
- Jun 3From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.Major
- May 7Referred to Coms. on B. & F.I. and JUD.Minor
- Apr 7In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 238 Harabedian Third Reading Urgency. Result: pass.Lower
- Apr 7Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 1030.).Passed Assembly
- Apr 2Read third time and amended. Ordered to third reading. (Page 995.)Major
- Mar 20Read second time. Ordered to third reading.Minor
- Mar 19From committee: Do pass. (Ayes 13. Noes 0.) (March 19).Minor
- Vote recorded Do pass. Result: pass.Lower
- Mar 19In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Mar 17Re-referred to Com. on APPR.Minor
- Mar 14From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended.Major
- Mar 4From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (March 4). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Mar 3From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (March 3). Re-referred to Com. on JUD.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary]. Result: pass.Lower
- Feb 26Coauthors revised.
- Feb 24(Pending re-refer to Com. on JUD.)Minor
- Feb 24Assembly Rule 56 suspended. (Page 440.)
- Feb 24Re-referred to Coms. on B.&F. and JUD. pursuant to Assembly Rule 96.Minor
- Feb 20Re-referred to Coms. on JUD. and B.&F. pursuant to Assembly Rule 96.Minor
- Feb 18Referred to Coms. on B.&F. and JUD.Minor
- Jan 14From printer. May be heard in committee February 13.
- Jan 13Read first time. To print.Introduced