California passed a bill amending consumer protections for servicemembers. Current law prohibits a lender from initiating a foreclosure against a servicemember within the 9 month period following the servicemember’s period of active service (unless the foreclosure sale is conducted pursuant to a court order or an agreement with the servicemember). Under the bill, the 9 month prohibition period is extended to 1 year. The bill also expands the application of the foreclosure protection to all mortgage loans (and not just mortgage loans originated prior to a servicemember’s period of military service). In addition, the bill requires lenders and servicers to forgive all interest incurred in excess of 6% during a servicemember’s current period of military service, and for 1 year after the period of military service, and to reduce a servicemember’s monthly payment by the amount of interest forgiven (for the period for which the payment is made). The bill becomes effective January 1, 2019.
See California Legislative website for the full text of the Statutes:
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB3212
