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| 1 | + | Amended IN Assembly March 14, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 238Introduced by Assembly Members Harabedian and Irwin(Principal coauthors: Assembly Members Bryan, Calderon, Caloza, Fong, Mark Gonzlez, Haney, Ransom, Celeste Rodriguez, Schiavo, Schultz, and Zbur)January 13, 2025 An act to add Title 19.1 (commencing with Section 3273.20) to Part 4 of Division 3 of the Civil Code, relating to wildfire relief, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGESTAB 238, as amended, Harabedian. Mortgage forbearance: state of emergency: wildfire.Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency.This bill would authorize a borrower who is experiencing financial hardship due directly, as defined, to the wildfire disaster described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025, to request forbearance on their mortgage loan. The bill would limit eligibility for that forbearance to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties. The bill would require the borrower to affirm that they are experiencing a financial hardship during the wildfire disaster. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program.This bill would require a mortgage servicer to, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. The bill would authorize a mortgage servicer, after that initial 180-day period, to require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. The bill would also prohibit a mortgage servicer from initiating any foreclosure process, moving for a foreclosure judgment or order of sale, or executing a foreclosure-related eviction or foreclosure sale. sale, or requiring a lump sum payment at the end of the forbearance period. The bill would prohibit a mortgage servicer from acting to negatively impact a borrowers credit score, or otherwise reporting any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to these provisions. The bill would also require that any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which these provisions become operative be credited toward the forbearance periods required to be afforded to a borrower by this bill.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.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Title 19.1 (commencing with Section 3273.20) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 19.1. Mortgage Deferment Act3273.20. This title is known, and may be cited, as the Mortgage Deferment Act.3273.21. For purposes of this title, the following terms have the following meanings:(a) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower does not include a person who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025.(b) Directly means that the borrowers residence has been rendered uninhabitable due to wildfire damage, including, but not limited to, destruction by fire, structural compromise, or conditions that made the home unsafe for occupancy. (b)(c) Mortgage loan means a loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state.(c)(d) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent.(d)(e) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025.3273.22. (a) (1) A borrower who is experiencing financial hardship due, directly or indirectly, due directly to the wildfire disaster may request forbearance on the mortgage loan by doing both of the following:(1)(A) Submitting a request to the borrowers mortgage loan servicer.(2)(B) Affirming that the borrower is experiencing a financial hardship during the wildfire disaster.(2) Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties.(b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days, and shall be extended once for an additional period of up to 180 days at the request of the borrower, unless, at the borrowers request, either the initial or extended period of forbearance is shortened. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year.(c) During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account.3273.23. (a) Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period.(b) A mortgage servicer shall not act to negatively impact a borrowers credit score, or to otherwise report any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to this title. (b)(c) A mortgage servicer shall communicate with a borrower to whom a forbearance has been granted to ensure that the borrower understands that the missed mortgage payments are required to be repaid, although they may be paid back over time.3273.24. A mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance.3273.25. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value.3273.26. Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the Palisades Fire and windstorm, it is necessary that this act take effect immediately. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly March 14, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 238Introduced by Assembly Members Harabedian and Irwin(Principal coauthors: Assembly Members Bryan, Calderon, Caloza, Fong, Mark Gonzlez, Haney, Ransom, Celeste Rodriguez, Schiavo, Schultz, and Zbur)January 13, 2025 An act to add Title 19.1 (commencing with Section 3273.20) to Part 4 of Division 3 of the Civil Code, relating to wildfire relief, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGESTAB 238, as amended, Harabedian. Mortgage forbearance: state of emergency: wildfire.Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency.This bill would authorize a borrower who is experiencing financial hardship due directly, as defined, to the wildfire disaster described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025, to request forbearance on their mortgage loan. The bill would limit eligibility for that forbearance to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties. The bill would require the borrower to affirm that they are experiencing a financial hardship during the wildfire disaster. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program.This bill would require a mortgage servicer to, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. The bill would authorize a mortgage servicer, after that initial 180-day period, to require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. The bill would also prohibit a mortgage servicer from initiating any foreclosure process, moving for a foreclosure judgment or order of sale, or executing a foreclosure-related eviction or foreclosure sale. sale, or requiring a lump sum payment at the end of the forbearance period. The bill would prohibit a mortgage servicer from acting to negatively impact a borrowers credit score, or otherwise reporting any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to these provisions. The bill would also require that any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which these provisions become operative be credited toward the forbearance periods required to be afforded to a borrower by this bill.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.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YES | |
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| 5 | - | ||
| 5 | + | Amended IN Assembly March 14, 2025 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 02, 2025 | |
| 8 | 7 | Amended IN Assembly March 14, 2025 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 238 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Members Harabedian and Irwin(Principal coauthors: Assembly Members Bryan, Calderon, Caloza, Fong, Mark Gonzlez, Haney, Ransom, Celeste Rodriguez, Schiavo, Schultz, and Zbur)January 13, 2025 | |
| 17 | 16 | ||
| 18 | 17 | Introduced by Assembly Members Harabedian and Irwin(Principal coauthors: Assembly Members Bryan, Calderon, Caloza, Fong, Mark Gonzlez, Haney, Ransom, Celeste Rodriguez, Schiavo, Schultz, and Zbur) | |
| 19 | 18 | January 13, 2025 | |
| 20 | 19 | ||
| 21 | 20 | An act to add Title 19.1 (commencing with Section 3273.20) to Part 4 of Division 3 of the Civil Code, relating to wildfire relief, and declaring the urgency thereof, to take effect immediately. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | 26 | AB 238, as amended, Harabedian. Mortgage forbearance: state of emergency: wildfire. | |
| 28 | 27 | ||
| 29 | - | Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency.This bill would authorize a borrower who is experiencing financial hardship | |
| 28 | + | Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency.This bill would authorize a borrower who is experiencing financial hardship due directly, as defined, to the wildfire disaster described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025, to request forbearance on their mortgage loan. The bill would limit eligibility for that forbearance to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties. The bill would require the borrower to affirm that they are experiencing a financial hardship during the wildfire disaster. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program.This bill would require a mortgage servicer to, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. The bill would authorize a mortgage servicer, after that initial 180-day period, to require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. The bill would also prohibit a mortgage servicer from initiating any foreclosure process, moving for a foreclosure judgment or order of sale, or executing a foreclosure-related eviction or foreclosure sale. sale, or requiring a lump sum payment at the end of the forbearance period. The bill would prohibit a mortgage servicer from acting to negatively impact a borrowers credit score, or otherwise reporting any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to these provisions. The bill would also require that any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which these provisions become operative be credited toward the forbearance periods required to be afforded to a borrower by this bill.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. | |
| 30 | 29 | ||
| 31 | 30 | Existing law requires a mortgage servicer to comply with applicable federal guidance regarding borrower options following a forbearance relating to the COVID-19 emergency. | |
| 32 | 31 | ||
| 33 | - | This bill would authorize a borrower who is experiencing financial hardship | |
| 32 | + | This bill would authorize a borrower who is experiencing financial hardship due directly, as defined, to the wildfire disaster described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025, to request forbearance on their mortgage loan. The bill would limit eligibility for that forbearance to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties. The bill would require the borrower to affirm that they are experiencing a financial hardship during the wildfire disaster. Because the bill would expand the crime of perjury, the bill would impose a state-mandated local program. | |
| 34 | 33 | ||
| 35 | - | This bill would would, except as specified, require a mortgage servicer to, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, provide the forbearance for up to 180 days. The bill would authorize a mortgage servicer, after that initial 180-day period, to require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. 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 initiating any foreclosure process, moving for a foreclosure judgment or order of sale, executing a foreclosure-related eviction or foreclosure sale, or requiring a lump sum payment at the end of the forbearance period. The bill would prohibit a mortgage servicer from acting to negatively impact a borrowers credit score, or otherwise reporting any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to these provisions. The bill would also require that any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which these provisions become operative be credited toward the forbearance periods required to be afforded to a borrower by this bill. assessing any late fees to the borrowers 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 and applicable federal guidelines and suspend reporting delinquencies to consumer reporting agencies for accounts granted disaster-related mortgage payment relief that were current when the borrower entered forbearance, and are otherwise performing as agreed. 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. | |
| 36 | - | ||
| 37 | - | 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. | |
| 34 | + | This bill would require a mortgage servicer to, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, provide the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. The bill would authorize a mortgage servicer, after that initial 180-day period, to require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. The bill would also prohibit a mortgage servicer from initiating any foreclosure process, moving for a foreclosure judgment or order of sale, or executing a foreclosure-related eviction or foreclosure sale. sale, or requiring a lump sum payment at the end of the forbearance period. The bill would prohibit a mortgage servicer from acting to negatively impact a borrowers credit score, or otherwise reporting any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to these provisions. The bill would also require that any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which these provisions become operative be credited toward the forbearance periods required to be afforded to a borrower by this bill. | |
| 38 | 35 | ||
| 39 | 36 | 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. | |
| 40 | 37 | ||
| 41 | 38 | This bill would provide that no reimbursement is required by this act for a specified reason. | |
| 42 | 39 | ||
| 43 | 40 | This bill would declare that it is to take effect immediately as an urgency statute. | |
| 44 | 41 | ||
| 45 | 42 | ## Digest Key | |
| 46 | 43 | ||
| 47 | 44 | ## Bill Text | |
| 48 | 45 | ||
| 49 | - | The people of the State of California do enact as follows:SECTION 1. Title 19.1 (commencing with Section 3273.20) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 19.1. Mortgage Deferment | |
| 46 | + | The people of the State of California do enact as follows:SECTION 1. Title 19.1 (commencing with Section 3273.20) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 19.1. Mortgage Deferment Act3273.20. This title is known, and may be cited, as the Mortgage Deferment Act.3273.21. For purposes of this title, the following terms have the following meanings:(a) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower does not include a person who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025.(b) Directly means that the borrowers residence has been rendered uninhabitable due to wildfire damage, including, but not limited to, destruction by fire, structural compromise, or conditions that made the home unsafe for occupancy. (b)(c) Mortgage loan means a loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state.(c)(d) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent.(d)(e) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025.3273.22. (a) (1) A borrower who is experiencing financial hardship due, directly or indirectly, due directly to the wildfire disaster may request forbearance on the mortgage loan by doing both of the following:(1)(A) Submitting a request to the borrowers mortgage loan servicer.(2)(B) Affirming that the borrower is experiencing a financial hardship during the wildfire disaster.(2) Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties.(b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days, and shall be extended once for an additional period of up to 180 days at the request of the borrower, unless, at the borrowers request, either the initial or extended period of forbearance is shortened. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year.(c) During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account.3273.23. (a) Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period.(b) A mortgage servicer shall not act to negatively impact a borrowers credit score, or to otherwise report any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to this title. (b)(c) A mortgage servicer shall communicate with a borrower to whom a forbearance has been granted to ensure that the borrower understands that the missed mortgage payments are required to be repaid, although they may be paid back over time.3273.24. A mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance.3273.25. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value.3273.26. Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the Palisades Fire and windstorm, it is necessary that this act take effect immediately. | |
| 50 | 47 | ||
| 51 | 48 | The people of the State of California do enact as follows: | |
| 52 | 49 | ||
| 53 | 50 | ## The people of the State of California do enact as follows: | |
| 54 | 51 | ||
| 55 | - | SECTION 1. Title 19.1 (commencing with Section 3273.20) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 19.1. Mortgage Deferment | |
| 52 | + | SECTION 1. Title 19.1 (commencing with Section 3273.20) is added to Part 4 of Division 3 of the Civil Code, to read:TITLE 19.1. Mortgage Deferment Act3273.20. This title is known, and may be cited, as the Mortgage Deferment Act.3273.21. For purposes of this title, the following terms have the following meanings:(a) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower does not include a person who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025.(b) Directly means that the borrowers residence has been rendered uninhabitable due to wildfire damage, including, but not limited to, destruction by fire, structural compromise, or conditions that made the home unsafe for occupancy. (b)(c) Mortgage loan means a loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state.(c)(d) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent.(d)(e) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025.3273.22. (a) (1) A borrower who is experiencing financial hardship due, directly or indirectly, due directly to the wildfire disaster may request forbearance on the mortgage loan by doing both of the following:(1)(A) Submitting a request to the borrowers mortgage loan servicer.(2)(B) Affirming that the borrower is experiencing a financial hardship during the wildfire disaster.(2) Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties.(b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days, and shall be extended once for an additional period of up to 180 days at the request of the borrower, unless, at the borrowers request, either the initial or extended period of forbearance is shortened. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year.(c) During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account.3273.23. (a) Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period.(b) A mortgage servicer shall not act to negatively impact a borrowers credit score, or to otherwise report any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to this title. (b)(c) A mortgage servicer shall communicate with a borrower to whom a forbearance has been granted to ensure that the borrower understands that the missed mortgage payments are required to be repaid, although they may be paid back over time.3273.24. A mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance.3273.25. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value.3273.26. Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title. | |
| 56 | 53 | ||
| 57 | 54 | SECTION 1. Title 19.1 (commencing with Section 3273.20) is added to Part 4 of Division 3 of the Civil Code, to read: | |
| 58 | 55 | ||
| 59 | 56 | ### SECTION 1. | |
| 60 | 57 | ||
| 61 | - | TITLE 19.1. Mortgage Deferment | |
| 58 | + | TITLE 19.1. Mortgage Deferment Act3273.20. This title is known, and may be cited, as the Mortgage Deferment Act.3273.21. For purposes of this title, the following terms have the following meanings:(a) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower does not include a person who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025.(b) Directly means that the borrowers residence has been rendered uninhabitable due to wildfire damage, including, but not limited to, destruction by fire, structural compromise, or conditions that made the home unsafe for occupancy. (b)(c) Mortgage loan means a loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state.(c)(d) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent.(d)(e) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025.3273.22. (a) (1) A borrower who is experiencing financial hardship due, directly or indirectly, due directly to the wildfire disaster may request forbearance on the mortgage loan by doing both of the following:(1)(A) Submitting a request to the borrowers mortgage loan servicer.(2)(B) Affirming that the borrower is experiencing a financial hardship during the wildfire disaster.(2) Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties.(b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days, and shall be extended once for an additional period of up to 180 days at the request of the borrower, unless, at the borrowers request, either the initial or extended period of forbearance is shortened. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year.(c) During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account.3273.23. (a) Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period.(b) A mortgage servicer shall not act to negatively impact a borrowers credit score, or to otherwise report any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to this title. (b)(c) A mortgage servicer shall communicate with a borrower to whom a forbearance has been granted to ensure that the borrower understands that the missed mortgage payments are required to be repaid, although they may be paid back over time.3273.24. A mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance.3273.25. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value.3273.26. Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title. | |
| 62 | 59 | ||
| 63 | - | TITLE 19.1. Mortgage Deferment | |
| 60 | + | TITLE 19.1. Mortgage Deferment Act3273.20. This title is known, and may be cited, as the Mortgage Deferment Act.3273.21. For purposes of this title, the following terms have the following meanings:(a) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower does not include a person who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025.(b) Directly means that the borrowers residence has been rendered uninhabitable due to wildfire damage, including, but not limited to, destruction by fire, structural compromise, or conditions that made the home unsafe for occupancy. (b)(c) Mortgage loan means a loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state.(c)(d) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent.(d)(e) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025.3273.22. (a) (1) A borrower who is experiencing financial hardship due, directly or indirectly, due directly to the wildfire disaster may request forbearance on the mortgage loan by doing both of the following:(1)(A) Submitting a request to the borrowers mortgage loan servicer.(2)(B) Affirming that the borrower is experiencing a financial hardship during the wildfire disaster.(2) Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties.(b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days, and shall be extended once for an additional period of up to 180 days at the request of the borrower, unless, at the borrowers request, either the initial or extended period of forbearance is shortened. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year.(c) During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account.3273.23. (a) Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period.(b) A mortgage servicer shall not act to negatively impact a borrowers credit score, or to otherwise report any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to this title. (b)(c) A mortgage servicer shall communicate with a borrower to whom a forbearance has been granted to ensure that the borrower understands that the missed mortgage payments are required to be repaid, although they may be paid back over time.3273.24. A mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance.3273.25. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value.3273.26. Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title. | |
| 64 | 61 | ||
| 65 | - | TITLE 19.1. Mortgage Deferment | |
| 62 | + | TITLE 19.1. Mortgage Deferment Act | |
| 66 | 63 | ||
| 67 | - | TITLE 19.1. Mortgage Deferment | |
| 64 | + | TITLE 19.1. Mortgage Deferment Act | |
| 68 | 65 | ||
| 69 | - | 3273.20. This title is known, and may be cited, as the Mortgage Deferment | |
| 66 | + | 3273.20. This title is known, and may be cited, as the Mortgage Deferment Act. | |
| 70 | 67 | ||
| 71 | 68 | ||
| 72 | 69 | ||
| 73 | - | 3273.20. This title is known, and may be cited, as the Mortgage Deferment | |
| 70 | + | 3273.20. This title is known, and may be cited, as the Mortgage Deferment Act. | |
| 74 | 71 | ||
| 75 | - | 3273.21. For purposes of this title, the following terms have the following meanings:(a | |
| 72 | + | 3273.21. For purposes of this title, the following terms have the following meanings:(a) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower does not include a person who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025.(b) Directly means that the borrowers residence has been rendered uninhabitable due to wildfire damage, including, but not limited to, destruction by fire, structural compromise, or conditions that made the home unsafe for occupancy. (b)(c) Mortgage loan means a loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state.(c)(d) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent.(d)(e) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025. | |
| 76 | 73 | ||
| 77 | 74 | ||
| 78 | 75 | ||
| 79 | 76 | 3273.21. For purposes of this title, the following terms have the following meanings: | |
| 80 | 77 | ||
| 81 | - | (a) (1) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, trustor, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower trustor. | |
| 82 | - | ||
| 83 | - | (2) Borrower does not include a person an individual who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025. secured property as evidenced by either a letter confirming the surrender or delivery of the keys to the property to the mortgagee, trustee, beneficiary, or authorized agent. | |
| 84 | - | ||
| 85 | - | (3) Borrower does not include an individual who has a recorded notice of default recorded against the real property that is secured by the residential mortgage loan before the beginning of the wildfire disaster unless the notice of default was rescinded. | |
| 78 | + | (a) Borrower means a natural person who is a mortgagor or trustor or a confirmed successor in interest, or a person who holds a power of attorney for a mortgagor or trustor or a confirmed successor in interest. Borrower does not include a person who has surrendered the property or has a recorded notice of default, unless the notice has been rescinded or was issued after January 5, 2025, and before the end of the state of emergency proclaimed by Governor Gavin Newsom on January 7, 2025. | |
| 86 | 79 | ||
| 87 | 80 | (b) Directly means that the borrowers residence has been rendered uninhabitable due to wildfire damage, including, but not limited to, destruction by fire, structural compromise, or conditions that made the home unsafe for occupancy. | |
| 88 | - | ||
| 89 | - | ||
| 90 | - | ||
| 91 | - | (c)Mortgage | |
| 92 | - | ||
| 93 | - | ||
| 94 | - | ||
| 95 | - | (b) Federally backed loan means a residential mortgage loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state. insured, guaranteed, purchased, or secured by a federal agency or government-sponsored entity. | |
| 96 | - | ||
| 97 | - | (c) Disaster-related forbearance relief means the relief described in servicing guidelines for federally backed loans. | |
| 98 | - | ||
| 99 | - | (d) (1) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent. | |
| 100 | - | ||
| 101 | - | (2) Mortgage servicer also means a subservicing agent to a master servicer by contract. | |
| 102 | - | ||
| 103 | - | (3) Mortgage servicer does not include a trustee, or a trustees authorized agent, acting under a power of sale pursuant to a deed of trust. | |
| 104 | - | ||
| 105 | - | (e) Residential mortgage loan means a loan that is secured by residential real property improved by four or fewer residential units. | |
| 106 | - | ||
| 107 | - | (e) | |
| 108 | - | ||
| 109 | - | ||
| 110 | - | ||
| 111 | - | (f) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025. 2025, or the federally declared disaster, declared on January 8, 2025, related to the Eaton Wildfire, the Palisades Fire, and the Straight-line Winds (DR-4856-CA). | |
| 112 | - | ||
| 113 | - | 3273.22. This title applies to a depository institution chartered under federal or state law, a person covered by the licensing requirements of Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code, or a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code. | |
| 114 | - | ||
| 115 | - | ||
| 116 | - | ||
| 117 | - | 3273.22. This title applies to a depository institution chartered under federal or state law, a person covered by the licensing requirements of Division 9 (commencing with Section 22000) or Division 20 (commencing with Section 50000) of the Financial Code, or a person licensed pursuant to Part 1 (commencing with Section 10000) of Division 4 of the Business and Professions Code. | |
| 118 | - | ||
| 119 | - | 3273.22. 3273.23. (a) (1)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:(A)(1) Submitting a request to the borrowers mortgage loan servicer. servicer before the earlier of either of the following:(A) Six months after the date upon which the state of emergency issued by Governor Gavin Newsom on January 7, 2025, is terminated.(B) January 7, 2027.(B)(2) Affirming that the borrower is experiencing a financial hardship during due to the wildfire disaster.(2)Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties.(b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. 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 12 months.(c)During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account.(c) The borrower shall be notified within five business days by the mortgages servicer whether their request for forbearance has been approved.(d) If the mortgage servicer, acting under delegated authority to make forbearance determinations on behalf of the investor, denies a forbearance request, 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:(1) A clear and concise explanation of the specific investor provision that requires denial.(2) The text of the servicing guidelines describing the disaster-related forbearance relief.(e) If the written notice in subdivision (c) cites any defect in the borrowers request, including an incomplete application or missing information, that is curable, the mortgage servicer shall do all of the following:(1) Specifically identify any curable defect in the written notice.(2) Provide 21 calendar days from the mailing date of the written notice for the borrower to cure any identified defect.(3) Accept the borrowers revised request for forbearance before the 21-day period described in paragraph (2) lapses.(4) Respond to the borrowers revised request within five business days of receipt of the revised request.(f) 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.(g) During the period of forbearance required by this section, no late fees shall be assessed to the borrowers account and the borrower shall not be charged a default rate of interest.(h) 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:(1) Any documentation or forms that the mortgage servicer requires the borrower to furnish or complete to be considered for an additional period of forbearance.(2) A description of the deadlines and timelines associated with considering the borrower for an additional period of forbearance.(i) 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.) and applicable federal guidelines. Mortgage servicers shall suspend reporting delinquencies to consumer reporting agencies for accounts granted disaster-related mortgage payment relief that were current when the borrower entered forbearance, and are otherwise performing as agreed. | |
| 120 | - | ||
| 121 | - | ||
| 122 | - | ||
| 123 | - | 3273.22. 3273.23. (a) (1)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: | |
| 124 | - | ||
| 125 | - | (A) | |
| 126 | - | ||
| 127 | - | ||
| 128 | - | ||
| 129 | - | (1) Submitting a request to the borrowers mortgage loan servicer. servicer before the earlier of either of the following: | |
| 130 | - | ||
| 131 | - | (A) Six months after the date upon which the state of emergency issued by Governor Gavin Newsom on January 7, 2025, is terminated. | |
| 132 | - | ||
| 133 | - | (B) January 7, 2027. | |
| 134 | 81 | ||
| 135 | 82 | (b) | |
| 136 | 83 | ||
| 137 | 84 | ||
| 138 | 85 | ||
| 139 | - | (2) Affirming that the borrower is experiencing a financial hardship during due to the wildfire disaster. | |
| 86 | + | (c) Mortgage loan means a loan that is secured by a mortgage and is made for financing, including refinancing of existing mortgage obligations, to create or preserve the long-term affordability of a residential structure in the state, or a buy-down mortgage loan secured by a mortgage, of an owner-occupied unit in this state. | |
| 87 | + | ||
| 88 | + | (c) | |
| 89 | + | ||
| 90 | + | ||
| 91 | + | ||
| 92 | + | (d) Mortgage servicer means a person or entity who directly services a loan or who is responsible for interacting with the borrower, managing the loan account on a daily basis, including collecting and crediting periodic loan payments, managing any escrow account, or enforcing the note and security instrument, either as the current owner of the promissory note or as the current owners authorized agent. | |
| 93 | + | ||
| 94 | + | (d) | |
| 95 | + | ||
| 96 | + | ||
| 97 | + | ||
| 98 | + | (e) Wildfire disaster means the conditions described in the proclamation of a state of emergency issued by Governor Gavin Newsom on January 7, 2025. | |
| 99 | + | ||
| 100 | + | 3273.22. (a) (1) A borrower who is experiencing financial hardship due, directly or indirectly, due directly to the wildfire disaster may request forbearance on the mortgage loan by doing both of the following:(1)(A) Submitting a request to the borrowers mortgage loan servicer.(2)(B) Affirming that the borrower is experiencing a financial hardship during the wildfire disaster.(2) Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties.(b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days, and shall be extended once for an additional period of up to 180 days at the request of the borrower, unless, at the borrowers request, either the initial or extended period of forbearance is shortened. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year.(c) During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account. | |
| 101 | + | ||
| 102 | + | ||
| 103 | + | ||
| 104 | + | 3273.22. (a) (1) A borrower who is experiencing financial hardship due, directly or indirectly, due directly to the wildfire disaster may request forbearance on the mortgage loan by doing both of the following: | |
| 105 | + | ||
| 106 | + | (1) | |
| 107 | + | ||
| 108 | + | ||
| 109 | + | ||
| 110 | + | (A) Submitting a request to the borrowers mortgage loan servicer. | |
| 111 | + | ||
| 112 | + | (2) | |
| 113 | + | ||
| 114 | + | ||
| 115 | + | ||
| 116 | + | (B) Affirming that the borrower is experiencing a financial hardship during the wildfire disaster. | |
| 140 | 117 | ||
| 141 | 118 | (2) Eligibility for forbearance pursuant to this title is limited to residential mortgage loans for personal, family, or household use, or borrowers with 10 or fewer investment properties. | |
| 142 | 119 | ||
| 143 | - | ||
| 144 | - | ||
| 145 | - | (b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. 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 12 months. | |
| 120 | + | (b) Upon a request by a borrower for forbearance under subdivision (a), forbearance shall be granted by the mortgage servicer for up to 180 days, and shall be extended once for an additional period of up to 180 days at the request of the borrower, unless, at the borrowers request, either the initial or extended period of forbearance is shortened. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. | |
| 146 | 121 | ||
| 147 | 122 | (c) During the period of forbearance described in this section, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrowers account. | |
| 148 | 123 | ||
| 149 | - | ||
| 150 | - | ||
| 151 | - | (c) The borrower shall be notified within five business days by the mortgages servicer whether their request for forbearance has been approved. | |
| 152 | - | ||
| 153 | - | (d) If the mortgage servicer, acting under delegated authority to make forbearance determinations on behalf of the investor, denies a forbearance request, 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: | |
| 154 | - | ||
| 155 | - | (1) A clear and concise explanation of the specific investor provision that requires denial. | |
| 156 | - | ||
| 157 | - | (2) The text of the servicing guidelines describing the disaster-related forbearance relief. | |
| 158 | - | ||
| 159 | - | (e) If the written notice in subdivision (c) cites any defect in the borrowers request, including an incomplete application or missing information, that is curable, the mortgage servicer shall do all of the following: | |
| 160 | - | ||
| 161 | - | (1) Specifically identify any curable defect in the written notice. | |
| 162 | - | ||
| 163 | - | (2) Provide 21 calendar days from the mailing date of the written notice for the borrower to cure any identified defect. | |
| 164 | - | ||
| 165 | - | (3) Accept the borrowers revised request for forbearance before the 21-day period described in paragraph (2) lapses. | |
| 166 | - | ||
| 167 | - | (4) Respond to the borrowers revised request within five business days of receipt of the revised request. | |
| 168 | - | ||
| 169 | - | (f) 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. | |
| 170 | - | ||
| 171 | - | (g) During the period of forbearance required by this section, no late fees shall be assessed to the borrowers account and the borrower shall not be charged a default rate of interest. | |
| 172 | - | ||
| 173 | - | (h) 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: | |
| 174 | - | ||
| 175 | - | (1) Any documentation or forms that the mortgage servicer requires the borrower to furnish or complete to be considered for an additional period of forbearance. | |
| 176 | - | ||
| 177 | - | (2) A description of the deadlines and timelines associated with considering the borrower for an additional period of forbearance. | |
| 178 | - | ||
| 179 | - | (i) 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.) and applicable federal guidelines. Mortgage servicers shall suspend reporting delinquencies to consumer reporting agencies for accounts granted disaster-related mortgage payment relief that were current when the borrower entered forbearance, and are otherwise performing as agreed. | |
| 124 | + | 3273.23. (a) Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period.(b) A mortgage servicer shall not act to negatively impact a borrowers credit score, or to otherwise report any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to this title. (b)(c) A mortgage servicer shall communicate with a borrower to whom a forbearance has been granted to ensure that the borrower understands that the missed mortgage payments are required to be repaid, although they may be paid back over time. | |
| 180 | 125 | ||
| 181 | 126 | ||
| 182 | 127 | ||
| 183 | - | (a)Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period. | |
| 184 | - | ||
| 185 | - | ||
| 128 | + | 3273.23. (a) Upon receiving a request for forbearance from a borrower pursuant to Section 3273.22, a mortgage servicer shall, with no additional documentation required other than the borrowers attestation to a financial hardship caused by the wildfire disaster and with no fees, penalties, or interest, beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, charged to the borrower in connection with the forbearance, grant the forbearance for up to 180 days, which may be extended for an additional period of up to 180 days at the request of the borrower. days. After the initial 180-day period, a mortgage servicer may require the borrower to provide documentation of ongoing financial hardship, and to participate in a check-in with the mortgage servicer every 90 days thereafter, in order to extend the period of forbearance for no more than one additional year. A mortgage servicer shall not require a lump sum payment to be due or required at the conclusion of the forbearance period. | |
| 186 | 129 | ||
| 187 | 130 | (b) A mortgage servicer shall not act to negatively impact a borrowers credit score, or to otherwise report any adverse information to a consumer credit reporting agency about a borrower, in connection with granting forbearance pursuant to this title. | |
| 131 | + | ||
| 132 | + | (b) | |
| 188 | 133 | ||
| 189 | 134 | ||
| 190 | 135 | ||
| 191 | 136 | (c) A mortgage servicer shall communicate with a borrower to whom a forbearance has been granted to ensure that the borrower understands that the missed mortgage payments are required to be repaid, although they may be paid back over time. | |
| 192 | 137 | ||
| 193 | - | ||
| 194 | - | ||
| 195 | - | 3273.24. (a) 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.(b) The disclosure required by subdivision (a) is only required to be furnished to the borrower once at the beginning of the forbearance period.(c) A lump sum payment shall not be required for a borrower who was current on the residential mortgage loan when the borrower entered forbearance. | |
| 138 | + | 3273.24. A mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance. | |
| 196 | 139 | ||
| 197 | 140 | ||
| 198 | 141 | ||
| 199 | - | 3273.24. | |
| 142 | + | 3273.24. A mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance. | |
| 200 | 143 | ||
| 201 | - | (b) The disclosure required by subdivision (a) is only required to be furnished to the borrower once at the beginning of the forbearance period. | |
| 202 | - | ||
| 203 | - | (c) A lump sum payment shall not be required for a borrower who was current on the residential mortgage loan when the borrower entered forbearance. | |
| 144 | + | 3273.25. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value. | |
| 204 | 145 | ||
| 205 | 146 | ||
| 206 | 147 | ||
| 207 | - | A | |
| 148 | + | 3273.25. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value. | |
| 149 | + | ||
| 150 | + | 3273.26. Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title. | |
| 208 | 151 | ||
| 209 | 152 | ||
| 210 | 153 | ||
| 211 | - | 3273.25 During the time of forbearance granted pursuant to this title, a mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance. sale if the borrower is performing pursuant to the terms of the forbearance. | |
| 212 | - | ||
| 213 | - | ||
| 214 | - | ||
| 215 | - | 3273.25 During the time of forbearance granted pursuant to this title, a mortgage servicer shall not initiate any judicial or nonjudicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. Foreclosure protections shall remain effective so long as the borrower complies with the terms of forbearance. sale if the borrower is performing pursuant to the terms of the forbearance. | |
| 216 | - | ||
| 217 | - | 3273.25. 3273.26. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value. | |
| 218 | - | ||
| 219 | - | ||
| 220 | - | ||
| 221 | - | 3273.25. 3273.26. Failure to comply with this title shall not affect the validity of a trustees sale or a sale to a bona fide purchaser for value. | |
| 222 | - | ||
| 223 | - | ||
| 224 | - | ||
| 225 | - | Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title. | |
| 226 | - | ||
| 227 | - | ||
| 228 | - | ||
| 229 | - | 3273.27. (a) (1) With respect to a federally backed loan, a person shall not be held liable for a violation of this title if compliance with this title conflicts with the servicing guidelines applicable to the federally backed loan.(2) Servicing guidelines applicable to a federally backed loan includes servicing guidelines like those issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the Single Family Housing Policy Handbook issued by the Federal Housing Administration of the United States Department of Housing and Urban Development, the VA Servicer Handbook issued by the United States Department of Veterans Affairs, or a servicing handbook issued by the Rural Development division of the United States Department of Agriculture, as those guidelines existed on January 13, 2025.(b) With respect to a residential mortgage loan that is not a federally backed loan, a person shall not be held liable for a violation of this title if compliance with this title conflicts with the servicing guidelines issued by Fannie Mae or Freddie Mac.(c) For purposes of this section, conflicts with means that it is impossible to comply with this title and the persons obligation under the applicable servicing guidelines. | |
| 230 | - | ||
| 231 | - | ||
| 232 | - | ||
| 233 | - | 3273.27. (a) (1) With respect to a federally backed loan, a person shall not be held liable for a violation of this title if compliance with this title conflicts with the servicing guidelines applicable to the federally backed loan. | |
| 234 | - | ||
| 235 | - | (2) Servicing guidelines applicable to a federally backed loan includes servicing guidelines like those issued by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the Single Family Housing Policy Handbook issued by the Federal Housing Administration of the United States Department of Housing and Urban Development, the VA Servicer Handbook issued by the United States Department of Veterans Affairs, or a servicing handbook issued by the Rural Development division of the United States Department of Agriculture, as those guidelines existed on January 13, 2025. | |
| 236 | - | ||
| 237 | - | (b) With respect to a residential mortgage loan that is not a federally backed loan, a person shall not be held liable for a violation of this title if compliance with this title conflicts with the servicing guidelines issued by Fannie Mae or Freddie Mac. | |
| 238 | - | ||
| 239 | - | (c) For purposes of this section, conflicts with means that it is impossible to comply with this title and the persons obligation under the applicable servicing guidelines. | |
| 240 | - | ||
| 241 | - | 3273.28. The Department of Financial Protection and Innovation shall post all of the following on its website:(a) Links to the provisions of servicing guidelines pertaining to disaster-related forbearance relief for federally backed loans.(b) A summary of Fannie Mae and Freddie Mac guidance to assist borrowers in understanding their forbearance programs.(c) A dedicated telephone number for borrowers seeking assistance. | |
| 242 | - | ||
| 243 | - | ||
| 244 | - | ||
| 245 | - | 3273.28. The Department of Financial Protection and Innovation shall post all of the following on its website: | |
| 246 | - | ||
| 247 | - | (a) Links to the provisions of servicing guidelines pertaining to disaster-related forbearance relief for federally backed loans. | |
| 248 | - | ||
| 249 | - | (b) A summary of Fannie Mae and Freddie Mac guidance to assist borrowers in understanding their forbearance programs. | |
| 250 | - | ||
| 251 | - | (c) A dedicated telephone number for borrowers seeking assistance. | |
| 252 | - | ||
| 253 | - | 3273.29. It is the intent of the Legislature that a mortgage servicer offer a borrower forbearance that is consistent with the mortgage servicers contractual or other authority. Nothing in this title requires a mortgage servicer to take any action that would require the mortgage servicer to breach the terms of an existing contract with the investor that owns the residential mortgage loan. | |
| 254 | - | ||
| 255 | - | ||
| 256 | - | ||
| 257 | - | 3273.29. It is the intent of the Legislature that a mortgage servicer offer a borrower forbearance that is consistent with the mortgage servicers contractual or other authority. Nothing in this title requires a mortgage servicer to take any action that would require the mortgage servicer to breach the terms of an existing contract with the investor that owns the residential mortgage loan. | |
| 258 | - | ||
| 259 | - | 3273.30. The provisions of this title are severable. If any provision of this title or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. | |
| 260 | - | ||
| 261 | - | ||
| 262 | - | ||
| 263 | - | 3273.30. The provisions of this title are severable. If any provision of this title or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. | |
| 154 | + | 3273.26. Any period of mortgage forbearance or deferred payment voluntarily offered by a mortgage servicer to a borrower due to the wildfire disaster before the date upon which this title becomes operative shall be credited toward the forbearance periods required to be afforded to a borrower by this title. | |
| 264 | 155 | ||
| 265 | 156 | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution. | |
| 266 | 157 | ||
| 267 | 158 | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution. | |
| 268 | 159 | ||
| 269 | 160 | SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution. | |
| 270 | 161 | ||
| 271 | 162 | ### SEC. 2. | |
| 272 | 163 | ||
| 273 | - | SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the | |
| 164 | + | SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the Palisades Fire and windstorm, it is necessary that this act take effect immediately. | |
| 274 | 165 | ||
| 275 | - | SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the | |
| 166 | + | SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the Palisades Fire and windstorm, it is necessary that this act take effect immediately. | |
| 276 | 167 | ||
| 277 | 168 | SEC. 3. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are: | |
| 278 | 169 | ||
| 279 | 170 | ### SEC. 3. | |
| 280 | 171 | ||
| 281 | - | To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the | |
| 172 | + | To avert economic and social harm by providing a structure for temporary relief to financially distressed borrowers during conditions of extreme peril to the safety of persons and property that exist due to impacts of the Palisades Fire and windstorm, it is necessary that this act take effect immediately. |