California Enacts Mortgage Forbearance Act, Effective Immediately; Will Pose Compliance Challenges for Servicers
California Governor Newsom signed the California Mortgage Forbearance Act into law on September 22, 2025, providing up to 12 months of mortgage relief for borrowers affected by the 2025 wildfires. The law, effective immediately, presents compliance challenges for servicers due to immediate implementation, potential conflicts with investor guidelines, and detailed denial notice requirements. For the full analysis, visit Financial Services Perspectives