Mortgage forbearance: state of emergency: wildfire.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill provides mortgage forbearance options for homeowners experiencing financial hardship due to wildfires, specifically referencing the Eaton Wildfire, Palisades Fire, and Straight-line Winds disasters declared in 2025. It allows borrowers to request forbearance from their mortgage servicer for up to 12 months, with certain restrictions on late fees and foreclosures. The bill also requires mortgage servicers to provide specific information to borrowers and the Department of Financial Protection and Innovation to assist those seeking assistance.
Key provisions
- Authorizes mortgage forbearance for homeowners impacted by wildfires.
- Limits forbearance period to a maximum of 12 months, with potential extensions.
- Prohibits late fees and default interest rates during forbearance.
- Restricts foreclosure activities during the forbearance period.
- Requires mortgage servicers to report credit obligations in compliance with the Fair Credit Reporting Act.
- Specifies eligibility criteria for borrowers, including those with loans secured by properties with four or fewer residential units.
- Mandates disclosure requirements for mortgage servicers regarding forbearance terms.
- Requires the Department of Financial Protection and Innovation to provide resources and support to affected borrowers.
Who is affected
- Homeowners with residential mortgages
- Mortgage servicers
- Borrowers experiencing financial hardship due to wildfires
Bill text
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Sponsors
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13 on record
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Cosponsors
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