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<ns0:Id>20250AB__184799INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-11</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1847</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Harabedian</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_ORIGINATING">(Principal coauthor: Assembly Member Irwin)</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_OPPOSITE">(Principal coauthors: Senators Allen and Pérez)</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Harabedian</ns0:Name>
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<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Irwin</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Pérez</ns0:Name>
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<ns0:Title> An act to amend Sections 3273.23 and 3273.24 of the Civil Code, relating to wildfire relief. </ns0:Title>
<ns0:RelatingClause>wildfire relief</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Mortgage forbearance: state of emergency: wildfire.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law authorizes a borrower to request forbearance on their residential mortgage loan for a period of 12 months if, among other things, the borrower affirms that they are experiencing financial hardship that prevents them from making timely payments on the 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. Existing law requires that request to be made before the earlier of either 6 months after the date upon which the state of emergency is terminated or January 7, 2027.</html:p>
<html:p>This bill would extend the period of mortgage forbearance to 36 months and extend the latest possible deadline for a borrower’s
request for forbearance to January 7, 2029. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program.</html:p>
<html:p>Existing law requires a mortgage servicer to disclose to a borrower to whom a forbearance has been granted that the forborne mortgage payments are required to be repaid. Existing law prohibits requiring a borrower who was current on the residential mortgage loan when they entered forbearance to make a lump sum payment.</html:p>
<html:p>This bill would require a mortgage servicer to offer the borrower the option to defer repayment of forborne amounts to the end of the loan term, as specified.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 3273.23 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
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<ns0:Num>3273.23.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
A borrower who is experiencing financial hardship that prevents the borrower from making timely payments on a residential mortgage loan due directly to the wildfire disaster may request forbearance on the residential mortgage loan by doing both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Submitting a request to the borrower’s mortgage loan servicer before the earlier of either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Six months after the date upon which the state of emergency issued by Governor Gavin Newsom on January 7, 2025, is terminated.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
January 7,
2029.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Affirming that the borrower is experiencing a financial hardship due to the wildfire disaster.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Upon a request by a borrower for forbearance under subdivision (a), a mortgage servicer shall offer mortgage payment forbearance for 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 36 months.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The borrower shall be notified within 10 business days by the mortgage servicer whether their request for forbearance has been approved.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
If the mortgage servicer, acting under delegated authority to make forbearance determinations on behalf of the investor, denies a forbearance request within the maximum allowable forbearance period of 36 months pursuant to subdivision (b), the mortgage servicer shall not be in violation of this section if the mortgage servicer provides written notice to the borrower stating the specific reason for denial. The notice shall include both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
A clear and concise explanation of the specific investor provision that is the basis for the denial.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The text of the specific investor guideline or contractual provision
that is the basis for the denial of the borrower’s forbearance request.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
If the written notice in subdivision (c) cites any defect in the borrower’s request, including an incomplete application or missing information, that is curable, the mortgage servicer shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Specifically identify any curable defect in the written notice.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Provide 21 calendar days from the mailing date of the written notice for the borrower to cure any identified defect.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Accept the borrower’s revised request for forbearance before the 21-day period described in paragraph (2) lapses.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Respond to the borrower’s revised request within five business days of receipt of the revised
request.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The forbearance period required by subdivision (b) shall include any period of forbearance related to the wildfire disaster that a mortgage servicer has provided to a borrower before the effective date of this title.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
During the period of forbearance required by this section, no late fees shall be assessed to the borrower’s account and the borrower shall not be charged a default rate of interest.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
No later than 30 calendar days before the end of an initial forbearance period, a mortgage servicer shall provide written notice to the borrower disclosing both of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Any documentation or forms that the mortgage servicer requires the borrower to furnish or complete to be considered for an additional period of forbearance.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A description of the deadlines and timelines associated with considering the borrower for an additional period of forbearance.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A mortgage servicer shall report the credit obligations of borrowers under a disaster-related forbearance plan in compliance with the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.). For accounts granted disaster-related mortgage payment relief pursuant to this title, a mortgage servicer shall not furnish information during the forbearance period indicating that the payments are in forbearance and shall do either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Report the credit obligation or account as current.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If a borrower was delinquent before the disaster-related forbearance plan, the mortgage servicer shall:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Maintain the delinquent status during the period in which the plan is in effect.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the consumer brings the account current during the forbearance period, report the account as current.
</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 3273.24 of the
<ns0:DocName>Civil Code</ns0:DocName>
is amended to read:
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<ns0:Num>3273.24.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
A mortgage servicer shall disclose to a borrower to whom a forbearance has been granted pursuant to Section 3273.23 that the forborne mortgage payments are required to be repaid.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The disclosure required by subdivision (a) is only required to be furnished to the borrower once at the beginning of the forbearance period.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A lump sum payment shall not be required for a borrower who was current on the residential mortgage loan when the borrower entered forbearance.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Unless it is prohibited by the terms of the applicable investor contract or
servicing guidelines, a mortgage servicer shall offer the borrower the option to defer repayment of forborne amounts to the end of the loan term, through a loan deferral or comparable loss mitigation option, consistent with the servicer’s contractual authority.
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<ns0:BillSection id="id_CD4C0B3F-FA23-4D85-B55D-98A1AF0D2AC9">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
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