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Bill

AB 238

Mortgage forbearance: state of emergency: wildfire.

2025-2026 Regular Session Introduced by Isaac Bryan and 12 co-sponsors

Allows California homeowners in wildfire emergencies to suspend or reduce mortgage payments during state-declared disasters without loan default consequences.

Chaptered by Secretary of State - Chapter 128, Statutes of 2025.
#mortgageforbearance #stateofemergency #wildfire
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WeVote Research Nonpartisan
Bill Summary · AB 238

Legislative bill overview

AB 238 allows California homeowners in wildfire-declared state of emergency areas to request mortgage forbearance (payment suspension or reduction) from their lenders. The bill creates a legal mechanism for affected borrowers to pause or modify mortgage payments during recovery periods without defaulting on their loans.

Why is this important

Wildfires increasingly displace Californians and destroy property, leaving homeowners simultaneously facing mortgage obligations while dealing with evacuation, rebuilding, and potential loss of income. Without forbearance protections, affected homeowners risk foreclosure during the crisis recovery period. This bill provides temporary financial relief to help households stabilize before resuming full payments.

Potential points of contention

  • Lender burden and costs: Financial institutions absorb income loss during forbearance periods; unclear how this affects mortgage rates or availability in high-risk fire areas
  • Definition and eligibility scope: The bill's specificity on which emergency declarations trigger forbearance rights and which homeowners qualify (primary residence vs. investment property) may create disputes
  • Duration limits: The length of forbearance periods and whether deferred payments are added to loan terms or forgiven affects long-term borrower debt levels and lender recovery

Compiled from official sources — confirm details with the bill’s official record.

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