California: Governor Newsom signs law to provide fire survivors with stronger mortgage relief
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~ Governor Gavin Newsom has taken another step towards supporting the survivors of the devastating Los Angeles fires by signing Assembly Bill 238 into law. The bill, also known as the Harabedian bill, requires lenders to provide mortgage forbearance for up to 12 months to homeowners who have been financially impacted by the fires.

This legislation builds upon the January agreement between the state and mortgage lenders, which offered forbearance for at least 90 days. Many lenders have voluntarily extended this relief for up to 12 months. However, with AB 238 in place, homeowners affected by the fires will now have enforceable legal requirements for mortgage relief.

In a statement, Governor Newsom emphasized the importance of providing support to those who are rebuilding after a disaster. He stated, "Homeowners rebuilding after a disaster need all the support they can get, including grace in light of this incredible hardship." He also expressed his commitment to working with lenders in the coming months to continue supporting survivors.

This new law complements another recently signed legislation that ensures homeowners receive interest on insurance payments. Together, these laws aim to provide financial security and relief for those affected by the wildfires.

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The significance of this bill is highlighted by its potential impact on homeowners and their communities. By offering financial relief, it can aid in their recovery process and help them rebuild their homes and lives.

One key aspect of AB 238 is that it protects homeowners from any negative impact on their credit score due to accessing mortgage forbearance. It also prohibits late fees and lump-sum repayments at the end of the forbearance period. Additionally, it prevents lenders from initiating or continuing foreclosure proceedings against these homeowners.

Transparency is also a crucial element of this legislation. Lenders who deny requests for mortgage forbearance must provide a specific reason for denial and give borrowers an opportunity to address any issues with their application.

Governor Newsom's signing message can be found on the California government website. It further emphasizes the importance of supporting survivors and promoting transparency in the process.

This bill is just one of many efforts being made by the state to aid in the rebuilding and recovery process after the Los Angeles fires. Governor Newsom has also recently signed legislation to cut taxes on cannabis and provide funding for affordable housing projects.

In a time of crisis, it is crucial for leaders to take action and provide support to those in need. Governor Newsom's signing of AB 238 is a testament to his commitment to helping Californians rebuild and recover from the devastating wildfires.

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