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CA AB1842
Bill
Status
Introduced
2/11/2026
Primary Sponsor
John Harabedian
Click for details
AI Summary
- Allows borrowers to request up to 180 days of initial mortgage forbearance when their home becomes uninhabitable due to a Governor-declared or federal emergency, extendable in 90-day increments up to 12 months total
- Prohibits mortgage servicers from charging late fees or default interest rates during the forbearance period, and bars them from initiating foreclosure proceedings while the borrower complies with forbearance terms
- Requires mortgage servicers to report accounts as current to credit bureaus during forbearance rather than indicating payments are in forbearance, protecting borrowers' credit scores
- Prohibits requiring lump sum repayment from borrowers who were current before entering forbearance, and servicers must offer the option to defer forborne amounts to the end of the loan term when allowed by investor contracts
- Requires mortgage servicers to submit monthly reports to the Department of Financial Protection and Innovation on forbearance requests, approvals, and denials during emergencies and for 90 days after
Legislative Description
California Emergency Mortgage Relief Act.
Last Action
Referred to Coms. on B. & F. and JUD.
2/23/2026
Committee Referrals
Banking and Finance2/23/2026
Full Bill Text
No bill text available