Legislation to Provide One Year Mortgage Relief for L.A. Fire Victims Gains Traction
In the wake of the devastating Los Angeles County fires, state lawmakers are pushing forward with Assembly Bill 238, a groundbreaking piece of legislation that aims to ease the financial burden on victims by offering one year of mortgage relief. Despite the voluntary agreements brokered by Governor Gavin Newsom with numerous lenders, the bill is seen as a crucial step towards providing substantial assistance to those affected by the fires.
The proposed legislation, introduced by Assemblymember John Harabedian (D-Pasadena) and co-sponsored by Assemblymember Jacqui Irwin (D-Thousand Oaks), offers a lifeline to homeowners grappling with the aftermath of the wildfires. Under AB 238, borrowers would have the option to halt their mortgage payments for up to 180 days without incurring any fees, penalties, or interest. All it takes is a simple attestation of financial hardship caused by the fires, with no need for extensive documentation.
Moreover, the bill includes provisions to prevent mortgage servicers from initiating foreclosure proceedings or executing any foreclosure judgments or sales during the relief period. This comprehensive approach to mortgage relief is seen as a crucial safety net for homeowners facing unprecedented challenges in the aftermath of the fires.
Assemblymember Harabedian expressed his optimism about the bill, stating, “This should be the industry standard across the board, and I look forward to continuing to work with stakeholders to make this a reality for all those who were impacted by the wildfires.” With support from a bipartisan group of lawmakers, including nine principal co-authors, the legislation is poised to make a significant impact on the lives of fire victims in Los Angeles County.
Voluntary Relief Efforts vs. Proposed Legislation
Prior to the introduction of Assembly Bill 238, Governor Newsom had secured voluntary agreements with major banks and state-chartered lenders to provide mortgage relief to affected homeowners. These agreements offered streamlined processes for seeking 90 days of payment relief, along with protections from foreclosure and eviction actions for a minimum of 60 days. While these efforts were commendable, they fell short of the comprehensive relief provided by AB 238.
The recent agreements with federally chartered banks like Wells Fargo, Bank of America, JP Morgan, Citibank, and U.S. Bank, followed by state-chartered banks such as Banc of California, Hanmi Bank, and PennyMac Loan Services, underscored the importance of supporting homeowners in distress. The addition of City National Bank, a major player in the county’s banking sector, further solidified the commitment of financial institutions to assist fire victims during this challenging time.
Path Forward for Assembly Bill 238
As the bill progresses through the legislative process, Assemblymember Harabedian and his colleagues are exploring options to expedite its passage and implementation. While the typical timeline for such legislation would involve committee hearings in the spring, there is a sense of urgency to provide relief to homeowners as quickly as possible.
Tom Steel, Chief of Staff for Assemblymember Harabedian, emphasized the need for swift action, stating, “We are actively seeking ways to fast-track this legislation and ensure that homeowners receive the assistance they need without delay.” With widespread bipartisan support and backing from key stakeholders, AB 238 is positioned to become a beacon of hope for fire victims struggling to rebuild their lives.
In conclusion, the journey towards one year of mortgage relief for Los Angeles County fire victims is a testament to the resilience and solidarity of the community. Through legislative efforts, voluntary agreements, and collaborative partnerships, Californians are coming together to offer a lifeline to those in need. As Assembly Bill 238 gains momentum and moves closer to becoming law, it signifies a ray of hope for homeowners seeking stability in the face of adversity.