Governor Newsom signs law to provide fire survivors with stronger mortgage relief

What you need to know: Governor Newsom today signed into law legislation to help homeowners affected by the Los Angeles fires receive mortgage relief.

LOS ANGELES - As part of the state's continued efforts to support Los Angeles firestorm survivors, Governor Newsom signed into law Assembly Bill 238 (Harabedian), which requires lenders to help borrowers experiencing financial hardship due to the Los Angeles firestorms by offering mortgage forbearance for up to 12 months.

This legislation expands on the January agreement the state reached with mortgage lenders to offer forbearance for firestorm survivors for at least 90 days, with many lenders voluntarily offering forbearance for up to 12 months. This bill deepens homeowner protections by expanding relief and creating enforceable legal requirements.

"Homeowners rebuilding after a disaster need all the support they can get, including grace in light of this incredible hardship. This bill is a welcome expansion of the forbearance agreements my administration secured earlier this year with major national and state-chartered lenders to offer mortgage relief to LA fire victims. Recovery requires an all-hands-on-deck approach, and I look forward to additional conversations with lenders in the coming months about how we can continue to support survivors together."

Governor Gavin Newsom

This bill complements another recently signed law, which ensures homeowners receive interest on insurance payments.

Why this matters:

✅ Financial security: Homeowners who have suffered a loss by fires should be provided with grace and flexibility as they rebuild and recover.
✅ Disaster recovery: This bill provides financial relief for wildfire victims rebuilding their homes and communities.
✅ No impact on credit: Homeowners who receive forbearance should not be penalized for accessing this important resource. Homeowners will also be protected from late fees, the requirement for a lump-sum repayment at the end of the forbearance period, and the initiation or furtherance of foreclosure proceedings.
✅ Transparency: Lenders who deny these requests are required to provide the specific reason for denial and provide the borrower an opportunity to cure defects in their application.

A signing message can be found here.

Learn more about California's rebuilding and recovery efforts after the LA Fires.