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Assembly committee advances emergency mortgage-forbearance package amid industry pushback
Summary
The Assembly Banking and Finance Committee recommended AB 1842 and AB 1847 to the Judiciary Committee after extended debate. Authors said the bills create statewide forbearance tools for homeowners after declared disasters; mortgage‑industry groups warned of conflicts with federal investor guidelines and liquidity risks.
The Assembly Banking and Finance Committee voted to advance a pair of bills aimed at giving homeowners more time and clarity to recover after disasters, but the measures drew sustained pushback from mortgage servicers and banking groups.
Assemblymember Harabedian, the author, told the committee AB 1842 (the California Emergency Mortgage Act) would create a statewide framework for mortgage forbearance when a residence is uninhabitable because of a state or federally declared emergency. "It would give the banks and the mortgage servicers clarity as to what the requirements would be," he said, describing a structure that mirrors protections enacted earlier for wildfire victims.
Harabedian also presented AB 1847, which would extend the existing AB 238 forbearance protection from 12 months up to 36 months in total. Survivor Robert…
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