CA Expands and Makes Permanent Mortgage  Forbearance Protections for Disaster-Affected Homeowners

On September 15, 2026, California Governor Gavin Newsom signed two companion bills that expand and make permanent mortgage relief for disaster-affected homeowners. AB 1842 (the California Mortgage Relief Act) and AB 1847 safeguard borrowers whose homes are left uninhabitable by a declared disaster.

AB 1842 creates a permanent statewide framework requiring mortgage servicers to provide forbearance for residential properties rendered uninhabitable by a federally declared disaster. Eligible borrowers can request an initial 180-day forbearance period, extendable up to 12 months in 90-day increments, simply by affirming uninhabitability, with no required documentation. During this period, servicers are (i) barred from assessing late fees or default-interest rates, (ii) must report accounts as current under the FCRA, and (iii) are prohibited from pursuing foreclosures. Servicers must also offer post-forbearance retention options that avoid lump-sum catch-up payments or increased monthly costs.

In tandem, AB 1847 amends existing wildfire-specific mortgage relief legislation enacted after the January 2025 Los Angeles fires, extending the maximum forbearance window from 12 months to 24 months and pushing the request deadline out to January 7, 2029. It also extends servicer notification windows to 21 days and mandates that, barring investor guideline restrictions, servicers offer loan deferrals or comparable loss mitigation options to push forborne amounts to the end of the loan term.  

Both AB1842 and AB 1847 become effective on January 1, 2027.