8legs: California department of financial protection and innovation

#1 out of 1

They lost their homes in the L.A. wildfires. Now they can't get the mortgage relief the state promised

Newest development shows many fire victims still awaiting full 12 months of forbearance under AB 238 despite the law taking effect.
Some servicers have offered only partial relief or demanded lump-sum repayments, triggering widespread complaints to the state DFPI.
Len Kendall fought his servicer after being told his loan did not qualify for a short-term forbearance and later received only three months of relief.
Experts say many forbearance terms hinge on investor guidelines and loan contracts, which can limit relief options.
State officials say DFPI has worked with institutions to ensure terms of borrowers’ loan agreements are clearly communicated and follow the law.
California’s CalAssist Mortgage Fund has distributed millions in grants to fire victims to aid housing recovery.
Some homeowners say they were unaware of AB 238’s limitations, including that forbearance is not guaranteed in all circumstances.
Advocates say delivery of relief must balance investor guidelines with borrowers’ needs during disasters.
Lawmakers are reviewing complaints and may escalate the issue to the attorney general for potential action.
The broader relief effort includes additional state and federal proposals to help disaster-affected homeowners.

Vote 0