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AB 1278: Mortgages: hazard insurance proceeds: interest.
What AB 1278 does, verified August 22, 2026
The bill would amend the law related to mortgages in California. Currently, financial institutions must pay interest on hazard insurance proceeds at a rate of at least 2% per annum. The proposed change would require this interest to be credited to the borrower's account annually or upon account termination, whichever is earlier. Additionally, the bill would make any uncashed checks issued for this purpose invalid after 90 calendar days.
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
✓Second ChamberComplete
5GovernorCurrent
6ChapteredPending
Last action: Enrolled and presented to the Governor at 4 p.m. (2026-08-20)Alert me
Author and sponsors
Full contact details, staff, and committees with Connect, $15/moUnlockRecent actions23 total · showing 5
| Aug. 20, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 13, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 0.). |
| Aug. 11, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug. 10, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.). |
| Aug. 04, 2026 | Read second time. Ordered to Consent Calendar. |