Wednesday, February 4, 2026

Assemblymember Harabedian Launches State Review of Mortgage Forbearance Law for Eaton Fire Survivors

The Pasadena assemblymember will evaluate whether lenders are complying with protections he authored for homeowners who lost their homes

Assemblymember John Harabedian is using a new legislative oversight tool to determine if the mortgage forbearance law he authored is actually protecting homeowners.

Harabedian and Assembly Speaker Robert Rivas announced Tuesday the launch of an Outcomes Review of AB 238, the Mortgage Forbearance Act, which requires mortgage servicers to offer up to 12 months of forbearance to homeowners experiencing financial hardship due to the January 2025 Los Angeles wildfires. The review is part of a first-in-the-nation Assembly oversight program designed to evaluate whether enacted laws are delivering intended results.

The announcement comes after Harabedian’s office received reports that some mortgage servicers are not following the law. The California Department of Financial Protection and Innovation has received 233 consumer complaints about mortgage forbearance since January 2025, with 92 percent resolved in favor of consumers, according to state data released last month.

“Wildfire survivors shouldn’t have to fight their mortgage company while they’re trying to rebuild their lives,” Harabedian said in a statement. “AB 238 was meant to provide real, immediate relief after disaster strikes. This Outcomes Review will help ensure the law is being followed and identify ways we can strengthen protections for families still at risk of losing their homes.”

AB 238, which Governor Gavin Newsom signed into law in September 2025, requires mortgage servicers to respond to forbearance requests within 10 business days and prohibits late fees, foreclosure proceedings, and negative credit reporting during the forbearance period. The law also bars lenders from demanding lump-sum repayment at the end of forbearance if the borrower was current on their mortgage before the fire.

Harabedian represents Assembly District 41, which includes Pasadena and the unincorporated community of Altadena—ground zero for the Eaton Fire’s destruction. The fire, which began January 7, 2025, in Eaton Canyon, killed at least 17 people and became the second most destructive wildfire in California history.

Speaker Rivas, who introduced the Outcomes Review program in November, said the initiative reflects the Assembly’s commitment to accountability.

“The Outcomes Review project reflects our Assembly’s shared commitment to accountability and oversight,” Rivas said. “I appreciate Assemblymember Harabedian for his willingness to ask the hard questions and dedication to making sure the laws we pass deliver results for Californians.”

The Outcomes Review program—which Rivas has described as “first-of-its-kind”—empowers Assembly members to evaluate laws they authored through hearings, community meetings, and stakeholder engagement. Under the program, lawmakers assess real-world implementation and can propose amendments, budget adjustments, or other changes if policies are not working as intended.

Assemblymember Jacqui Irwin of Thousand Oaks was joint author of AB 238.

Residents who have experienced difficulties with mortgage servicers can file complaints with the Department of Financial Protection and Innovation at dfpi.ca.gov or by calling 866-275-2677. Harabedian’s district office can be reached at 626-351-1917.

The first forbearance periods granted under AB 238 began expiring in late 2025. Whether the Outcomes Review leads to legislative changes will depend on what the process reveals about lender compliance.