Altadena after the fire (Photo – W.K.)
In a major step toward helping Californians rebuild after devastating wildfires, Governor Gavin Newsom has signed Assembly Bill 238, the Mortgage Forbearance Act, into law.
By News Desk
Authored by Assemblymember John Harabedian (D–Pasadena), the new legislation provides critical financial relief to survivors of the Los Angeles Fires.
Effective immediately, the law allows eligible homeowners to pause their mortgage payments for up to one year without incurring penalties or damaging their credit. Crucially, it prohibits lenders from demanding lump-sum repayments once the forbearance period ends—ensuring fire victims can recover without facing unmanageable debt.
“For months since the fires, survivors have been forced to make two housing payments: one for their temporary rental accommodations and another mortgage payment for a house that either doesn’t exist anymore or is uninhabitable due to smoke and ash damage,” said Assemblymember Harabedian. “AB 238 will ease the financial burden that too many families are facing while they get back on their feet.”
In the aftermath of the fires, Harabedian worked with the Governor to secure 90-day forbearance commitments from nearly 400 mortgage lenders across California. AB 238 builds on that initiative by establishing uniform, statewide protections for affected homeowners.
Residents experiencing issues with mortgage servicers under the new law are encouraged to contact the Department of Financial Protection and Innovation (DFPI) to ensure their rights are upheld. Constituents may also reach out to Assemblymember Harabedian’s district office at (626) 351-1917 for assistance.
With the Governor’s signature, California takes another meaningful step toward recovery for families still reeling from the disaster.
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