Legis
Housing
AB 1847, Chapter 242, Statutes of 2026 · Tuesday 15 September 2026

Mortgage forbearance: state of emergency: wildfire

Wildfire-displaced homeowners can seek up to 24 months of mortgage forbearance and defer missed payments.

The law expands payment relief for borrowers whose homes became uninhabitable in the January 2025 Eaton, Palisades, and Straight-line Winds disaster. It extends both the available relief period and the application deadline.

What the law does ​

  • Allows eligible borrowers to request forbearance through January 7, 2029, or six months after the emergency ends, whichever is earlier.
  • Requires borrowers to affirm both wildfire-related financial hardship and that the mortgaged property is uninhabitable.
  • Requires servicers to offer initial 90-day payment pauses and borrower-requested 90-day extensions, up to 24 months total.
  • Permits added documentation after 12 months only when a loan investor, guarantor, insurer, or holder requests documentation reasonably needed to decide the extension.
  • Requires servicers to decide requests within 21 days, subject to an agreed extension for added documents and investor approval.
  • Bars late fees and default-rate interest during forbearance and while a borrower awaits a decision.
  • Requires servicers to explain denials based on investor rules and give borrowers 21 days to fix curable application defects.
  • Requires servicers to offer deferral of missed amounts until the loan term ends when permitted by applicable investor contracts or servicing guidelines.
  • Requires disaster-forbearance credit reporting to show current status, or preserve preexisting delinquency without reporting the payments as in forbearance.

Who it affects ​

  • Borrowers with residential mortgages facing wildfire-related financial hardship and an uninhabitable secured home.
  • Mortgage servicers handling loans affected by the January 2025 wildfire disaster.
  • Loan investors, guarantors, insurers, and holders whose approval or documentation requirements apply to extensions beyond 12 months.

Context ​

The law applies to the wildfire disaster covered by Governor Gavin Newsom’s January 7, 2025 emergency proclamation and the related January 8, 2025 federal disaster declaration.