AB 238: Mortgage forbearance: state of emergency: wildfire.

The bill would allow borrowers who are experiencing financial hardship due to a wildfire disaster to request forbearance on their residential mortgage loans. This forbearance period would be up to 12 months, with the option to extend it in 90-day increments. During this period, mortgage servicers would not assess late fees or charge default interest rates. The bill would also prohibit foreclosure processes, including judicial and nonjudicial foreclosures, during the forbearance period. Additionally, the bill would require mortgage servicers to report borrower credit obligations in compliance with federal regulations and prohibit furnishing information indicating that payments are in forbearance. The bill would also establish a telephone number for borrowers seeking assistance and post information on the department of financial protection and innovation's website.