Wednesday, April 22, 2026

Two Mortgage Relief Bills by Pasadena Assemblymember Clear Committee Hurdle

Pasadena Assemblymember John Harabedian

Legislation would triple forbearance for Eaton and Palisades fire survivors and create statewide protections for future disasters

Two mortgage relief bills authored by Assemblymember John Harabedian advanced through the Assembly Banking and Finance Committee on Tuesday, extending a legislative campaign that began when the Eaton Fire swept through his district 15 months ago.

AB 1847 would extend mortgage forbearance from 12 months to 36 months for homeowners affected by the Eaton and Palisades fires and push the deadline to request relief to January 7, 2029. Its companion measure, AB 1842 — the California Emergency Mortgage Relief Act — would create a statewide framework allowing homeowners to pause mortgage payments whenever a state of emergency is declared, covering wildfires, floods, earthquakes and other disasters, according to a press release from Harabedian’s office.

Both bills build on AB 238, the Mortgage Forbearance Act, which Governor Gavin Newsom signed on September 22, 2025. That law requires mortgage servicers to offer up to 12 months of forbearance, in 90-day increments, to homeowners whose properties were destroyed or rendered uninhabitable by the January 2025 Los Angeles wildfires. It prohibits late fees, foreclosure proceedings, negative credit reporting and lump-sum repayment demands.

But the protections have not always worked as intended. At an Outcomes Review hearing held at Pasadena City College in March, survivors of the Eaton and Palisades fires told Harabedian and Assembly Banking and Finance Committee Chair Avelino Valencia (D-Anaheim) that mortgage servicers had delayed or denied relief required under the law, according to a press release from Harabedian’s office.

“While some banks abided by the law in granting relief via the Mortgage Forbearance Act, many delayed and denied consumers the relief they are owed under the law,” Harabedian said in a statement released by his office. “That is why I have introduced AB 1847.”

The Eaton Fire, which began on January 7, 2025, destroyed 9,414 structures and killed 19 people across 14,021 acres, according to Cal Fire. The devastation was concentrated in Altadena, an unincorporated community within Harabedian’s Assembly District 41, which also includes Pasadena, La Cañada Flintridge, Sierra Madre and Monrovia.

Recovery has been slower and more costly than initially anticipated. Insurance claim delays, labor and materials shortages, permitting backlogs and rising rebuilding costs have left many homeowners unable to return to their properties before the original 12-month forbearance periods expire. The first periods granted under AB 238 began running out in late 2025.

“It is essential to continue providing support and relief to communities as they recover from wildfires,” Harabedian said in a statement from his office announcing the committee passage. “By providing mortgage relief, we can foster stronger community recovery efforts, ensure that families remain housed, and reduce displacement that families and communities face.”

AB 1847 would also require mortgage servicers to offer borrowers the option to defer repayment of forborne amounts to the end of the loan term, according to the bill text. The existing law prohibited lump-sum repayment demands but did not specify how borrowers would repay missed payments.

AB 1842 would go further, requiring mortgage servicers to file monthly reports with the Department of Financial Protection and Innovation on the number of forbearance requests received during any declared emergency, how many were approved and how many were denied, including the reasons. The bill would also allow borrowers to bring civil action against servicers who violate the law.

The Los Angeles County Board of Supervisors unanimously backed AB 1847 on April 7 in a motion authored by Supervisor Kathryn Barger, whose Fifth Supervisorial District includes Altadena.

“More than a year after the Eaton Fire, too many families are still waiting for stability while mortgage servicers fail to provide the relief AB 238 guarantees them,” Valencia said, according to a press release from Harabedian’s office. “These are real people and they deserve better.”

Homeowners experiencing difficulty with mortgage servicers can file complaints with the DFPI at dfpi.ca.gov or by calling 866-275-2677. Harabedian’s district office can be reached at 626-351-1917.

If both bills reach the governor’s desk, Eaton Fire survivors would have until 2028 to rebuild without the threat of foreclosure — and homeowners across California would gain a standing right to pause payments the next time disaster strikes.