Civil Code section 3273.23
(a)
A borrower who is experiencing financial hardship that prevents the borrower from making timely payments on a residential mortgage loan due directly to the wildfire disaster may request forbearance on the residential mortgage loan by doing both of the following:(1)
Submitting a request to the borrower’s mortgage loan servicer before the earlier of either of the following:(A)
Six months after the date upon which the state of emergency issued by Governor Gavin Newsom on January 7, 2025, is terminated.(B)
January 7, 2027.(2)
Affirming that the borrower is experiencing a financial hardship due to the wildfire disaster.(b)
Upon a request by a borrower for forbearance under subdivision (a), a mortgage servicer shall offer mortgage payment forbearance for a period of up to an initial 90 days, which shall be extended at the request of the borrower in 90-day increments, up to a maximum forbearance period of 12 months.(c)
The borrower shall be notified within 10 business days by the mortgage servicer whether their request for forbearance has been approved.(d)
If the mortgage servicer, acting under delegated authority to make forbearance determinations on behalf of the investor, denies a forbearance request within the maximum allowable forbearance period of 12 months pursuant to subdivision (b), the mortgage servicer shall not be in violation of this section if the mortgage servicer provides written notice to the borrower stating the specific reason for denial. The notice shall include both of the following:(1)
A clear and concise explanation of the specific investor provision that is the basis for the denial.(2)
The text of the specific investor guideline or contractual provision that is the basis for the denial of the borrower’s forbearance request.(e)
If the written notice in subdivision (c) cites any defect in the borrower’s request, including an incomplete application or missing information, that is curable, the mortgage servicer shall do all of the following:(1)
Specifically identify any curable defect in the written notice.(2)
Provide 21 calendar days from the mailing date of the written notice for the borrower to cure any identified defect.(3)
Accept the borrower’s revised request for forbearance before the 21-day period described in paragraph (2) lapses.(4)
Respond to the borrower’s revised request within five business days of receipt of the revised request.(f)
The forbearance period required by subdivision (b) shall include any period of forbearance related to the wildfire disaster that a mortgage servicer has provided to a borrower before the effective date of this title.(g)
During the period of forbearance required by this section, no late fees shall be assessed to the borrower’s account and the borrower shall not be charged a default rate of interest.(h)
No later than 30 calendar days before the end of an initial forbearance period, a mortgage servicer shall provide written notice to the borrower disclosing both of the following:(1)
Any documentation or forms that the mortgage servicer requires the borrower to furnish or complete to be considered for an additional period of forbearance.(2)
A description of the deadlines and timelines associated with considering the borrower for an additional period of forbearance.(i)
A mortgage servicer shall report the credit obligations of borrowers under a disaster-related forbearance plan in compliance with the federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681 et seq.). For accounts granted disaster-related mortgage payment relief pursuant to this title, a mortgage servicer shall not furnish information during the forbearance period indicating that the payments are in forbearance and shall do either of the following:(1)
Report the credit obligation or account as current.(2)
If a borrower was delinquent before the disaster-related forbearance plan, the mortgage servicer shall:(A)
Maintain the delinquent status during the period in which the plan is in effect.(B)
If the consumer brings the account current during the forbearance period, report the account as current.
Source:
Section 3273.23, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=3273.23. (updated Sep. 22, 2025; accessed Oct. 20, 2025).
