Assembly Members Harabedian and Irwin's mortgage relief legislation responds to California's January 2025 wildfire emergency by establishing a streamlined forbearance process for affected homeowners. The measure allows borrowers experiencing financial hardship due to the disaster to pause their mortgage payments for up to 180 days, with the option to extend for an additional 180-day period.

Under the bill's provisions, borrowers need only submit a request to their mortgage servicer and attest to their financial hardship to qualify for forbearance. Mortgage servicers must grant these requests without requiring additional documentation or imposing fees, penalties, or extra interest beyond scheduled payment amounts. The legislation also requires servicers to communicate with borrowers about repayment obligations while prohibiting them from initiating or advancing any foreclosure proceedings during the forbearance period.

The measure takes effect immediately upon enactment through an urgency clause, citing the need to prevent economic harm from the Palisades Fire and associated windstorm. While the bill creates a state-mandated local program by expanding perjury provisions, it specifies that no reimbursement to local agencies or school districts is required under California constitutional provisions.