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Senate panel advances mortgage-forbearance bill for wildfire survivors
Summary
The Senate Committee on Banking and Financial Institutions voted to refer Assembly Bill 238 to the Senate Judiciary Committee after clearing a measure that would let wildfire survivors pause mortgage payments for up to a year without penalties, foreclosure, credit reporting or balloon payments.
The Senate Committee on Banking and Financial Institutions voted to refer Assembly Bill 238, the Mortgage Forbearance Act authored by Assemblymember Harbedian, to the Senate Judiciary Committee after testimony and unanimous committee support.
Assemblymember Harbedian said the Los Angeles wildfires left many residents ‘‘reeling’’ and described AB 238 as providing ‘‘a vital safety net and a uniform process for relief.’’ He said the bill would allow wildfire survivors to temporarily pause mortgage payments for up to a year ‘‘and during that time, they would not receive any penalties, no foreclosure, no damage to their credit report, and without any balloon payments at the end of that foreclosure period.’’
The bill drew support from a broad coalition that included the County of Los Angeles, the California Charter Schools Association, SEIU State Council, the California Apartment Association and the California Professional Firefighters. Several witnesses at the hearing identified themselves in favor of the measure, including Adam Kegwin (California Charter Schools Association), Sarah Brennan (Weideman Group on behalf of SEIU State Council), Emerald Evans (In Child Poverty California and related groups), Sylvia Solis Shaw (City of Los Angeles), and a representative identified as SRS for Los Angeles County.
Representatives of the California Bankers Association and the Consumer Data Industry Association told the committee they had worked with the author on the bill and said some compliance and reporting language remained to be refined as the bill moved through the Senate. Vanessa Lugo of the California Bankers Association said the association was ‘‘pleased to have been working with assembly member Harbedian’’ and looked forward to further technical changes. Randy Pollock of the Consumer Data Industry Association said the group appreciated work on amendments to ensure accurate credit reporting.
Harbedian told the committee the bill had ‘‘no formal opposition’’ and asked for the committee’s aye vote. The committee voted to pass AB 238 to the Senate Judiciary Committee; the measure recorded seven affirmative votes and was reported out of committee.
AB 238 moves next to Senate Judiciary, where further amendments or floor action may be considered.
