Via an amendment to Assembly Bill 2501, California Assembly Banking and Finance Chair Monique Limon
has introduced sweeping forbearance legislation that will influence single-family and multifamily mortgages, auto-secured funding, Property Assessed Clean Energy (SPEED) financing, and pay day loans. NHomeowner, Tenant, and customer Relief Law of 2020, the balance offers up mandatory long-lasting forbearances; prohibitions on foreclosures, evictions and repossessions; and mandatory repayment plans and charge limitations on pay day loans. The balance would simply take instant impact and carry on in effect until 180 times following the Governor declares that the emergency relatnded.
The bill would prohibit mortgagees, mortgage servicers and similar parties from commencing or prosecuting any judicial foreclosure action or recording a Notice of Default, and from taking any steps to evict tenants following a foreclosure with respect to residential mortgage loans. It might remain judicial and nonjudicial property property foreclosure proceedings and time limitations and need a 180-day forbearance required by borrowers experiencing a hardship that is financial. Borrowers that are 60 times or even more delinquent on a home loan responsibility would immediately be given a 180-day forbearance.