Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Disaster Relief Mortgage Forbearance topic
No spam. Unsubscribe anytime.
Senate committee advances AB 238 to allow up to one year mortgage forbearance for L.A. County wildfire survivors
Summary
The Senate Committee on Appropriations voted to pass AB 238 to the Senate floor after testimony that the bill would let wildfire survivors in Los Angeles County request up to 12 months of mortgage forbearance. State finance and regulatory agencies warned of uncertain but potentially measurable costs.
The California Senate Committee on Appropriations voted to recommend AB 238 to the Senate floor after Assemblymember Harvidian presented the bill as “a crucial safety net for LA County wildfire survivors.” Under the bill, borrowers impacted by wildfires in Los Angeles County could request forbearance on mortgage payments for up to one year.
Assemblymember Harvidian said AB 238 “provides a crucial safety net for LA County wildfire survivors. Under this bill, borrowers can request forbearance on their mortgage payments for up to 1 year.” Supporters, including Cleo Bluthenthal of the California Community Foundation, spoke in strong support of the measure.
State agencies raised fiscal concerns during the committee hearing. The Department of Financial Protection and Innovation (DFPI) told the committee it expects an increase in complaints related to wildfire disaster mortgage forbearance relief and that it "anticipates an increase in complaints related to wildfire disaster mortgage forbearance relief, but expects to absorb the workload within existing resources." The Department of Real Estate told the committee it may incur costs up to $150,000 depending on complaint volume and complexity. The Department of Finance said it had no position but noted the bill’s overall fiscal impact is “unknown and expected to be limited,” and earlier referenced concerns about potential state costs when similar measures were discussed.
The committee recorded an initial roll call and later confirmed the recommendation to pass the bill to the Senate floor; the final recorded vote on the measure was 7 to 0 in favor. The committee placed the bill on the suspense calendar for fiscal review before the Senate floor action, and the measure will proceed with the committee’s due-pass recommendation.
Why it matters: AB 238 would change options available to homeowners who lost property or income because of wildfire damage and sets an administrative expectation for state regulators to handle related consumer complaints. The fiscal impact depends on complaint volume and the extent of department workload to implement and monitor lending forbearances.
What’s next: The bill moves to the full Senate with a due-pass recommendation and will be subject to fiscal review and any further amendments on the floor.
