Overview

• The Mortgage Forbearance Act (AB 238) took effect immediately for homeowners impacted by the Palisades and Eaton fires in Los Angeles County.
• Eligible owners of residential properties up to four units can request an initial 90‑day pause, extendable in 90‑day increments for up to a year.
• Servicers are barred from late fees, interest‑rate hikes, foreclosures, and credit‑bureau reporting during forbearance, and no lump‑sum catch‑up is allowed at term end if the loan is current.
• Lenders must explain any denial and allow applicants time to fix errors, with the Department of Financial Protection and Innovation available to handle complaints and oversee compliance.
• The new law formalizes earlier voluntary relief following the January fires and operates alongside the CalAssist Mortgage Fund offering up to $20,000 or three months of payments.