AB 1842: California Mortgage Relief Act.

This bill provides emergency relief to borrowers who are struggling to make mortgage payments due to a state of emergency. Borrowers can request forbearance on their residential mortgage loans, which would allow them to temporarily suspend or reduce payments. The forbearance period can be up to 12 months, and mortgage servicers are prohibited from charging late fees or interest during this time. To qualify for this relief, borrowers must affirm that their residential unit is uninhabitable as a direct result of the emergency. Mortgage servicers are required to report the credit obligations of borrowers under an emergency-related forbearance plan in compliance with federal law. During the forbearance period, mortgage servicers are also prohibited from furnishing information indicating that payments are in forbearance, and instead, must report the credit obligation as current or delinquent…