California AB1847 modifies mortgage forbearance rules for borrowers affected by the wildfire disaster.

California AB1847 amends the Civil Code to provide mortgage forbearance for borrowers impacted by the wildfire disaster. Borrowers experiencing financial hardship due to the disaster can request forbearance for up to 24 months. Mortgage servicers must disclose that forborne payments will be repaid and offer borrowers the option to defer repayment until the end of the loan term. Servicers must report credit obligations in compliance with federal law and cannot require lump sum payments from borrowers who were current before forbearance.

California AB1847 modifies mortgage forbearance rules for borrowers affected by the wildfire disaster.

California AB1847 amends the Civil Code to provide mortgage forbearance for borrowers impacted by the wildfire disaster. Borrowers experiencing financial hardship due to the disaster can request forbearance for up to 24 months. Mortgage servicers must disclose that forborne payments will be repaid and offer borrowers the option to defer repayment until the end of the loan term. Servicers must report credit obligations in compliance with federal law and cannot require lump sum payments from borrowers who were current before forbearance.