CA AB2501

Prohibits mortgage servicers from commencing foreclosures, recording notices of default, or evicting borrowers during the 12-month "covered period" following the bill's enactment, with limited exceptions for vacant or abandoned properties.

Requires mortgage servicers to grant borrowers forbearance upon request for up to 180 days initially, automatically extended for additional 90-day periods (up to 12 months total), with no additional fees, penalties, or interest beyond scheduled amounts.

Mandates borrowers receiving forbearance on mortgages with tenants provide rent relief to tenants for the forbearance period and requires servicers to evaluate loss mitigation options before pursuing foreclosure after forbearance ends.

Prohibits vehicle repossession through self-help methods until January 1, 2023, and allows consumers to request forbearance for at least 90 days (extendable to 270 days total) on vehicle-secured credit obligations with limited interest charges and no additional fees.

Caps deferred deposit transaction fees at 5 percent of check face value and requires lenders to offer 60-day payment plans with four equal installments at no additional charge during the COVID-19 emergency and 180-day period following it.