California homeowners recovering from recent wildfires will now have stronger, guaranteed protections thanks to a new law signed by Governor Gavin Newsom.
The legislation, Assembly Bill 238, requires mortgage lenders to provide up to 12 months of forbearance to homeowners affected by declared disasters — ensuring they won’t lose their homes while they rebuild.
Under the new law, borrowers who qualify:
- Will not face credit score damage for requesting forbearance.
- Will not be charged late fees or penalties during the relief period.
- Will not be required to repay missed payments in a lump sum once forbearance ends.
- Must receive a clear written explanation if their request is denied, along with a chance to correct any issues.
This legislation builds on earlier voluntary agreements between the state and major lenders — but now makes these relief options a legal requirement, offering long-term stability and transparency for fire survivors across California.
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