California 20252026 Regular Session Status: To Executive 1 D cosponsors

AB 493 — Mortgages: hazard insurance proceeds.

Last action — Chaptered by Secretary of State - Chapter 103, Statutes of 2025.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been sent to the executive. Introduced February 10, 2025. It awaits signature.

Next likely step: the executive signs it into law or issues a veto.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 64% · moderate confidence

  • To Executive

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 7 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

Existing law, the California Residential Mortgage Lending Act, regulates persons engaging in the business of making residential mortgage loans or servicing of residential mortgage loans, as administered by the Commissioner of Financial Protection and Innovation. A willful violation of any provision of the act constitutes a crime, as specified. The act requires a trust account to be placed in a non-interest-bearing account in a federally insured depository institution, a federal home loan bank, or other similar government-sponsored enterprise, except as specified. This bill would authorize a financial institution, as defined, to deposit hazard insurance proceeds in an interest-bearing account in a federally insured depository institution, a federal home loan bank, a federal reserve bank, or another similar government-sponsored enterprise. Existing law requires a financial institution that makes loans upon the security of real property containing only a one- to four-family residence in this state or purchases obligations secured by the property and that receives money in advance for payment of taxes and assessments on the property, for insurance, or for other purposes relating to the property to pay interest on those amounts to the borrower, as specified. Existing law prohibits those financial institutions from imposing any fee or charge in connection with the maintenance or disbursement of money received in advance for the payment of taxes and assessments on real property securing loans made by the financial institution, or for the payment of insurance, or for other purposes relating to that real property, which would result in an interest rate of less than 2% per annum being paid on the moneys received. Existing law defines the term financial institution for purposes of those provisions to include, among other things, savings associations. This bill would require a financial institution that makes loans or purchases obligations as described above and that holds hazard insurance proceeds in a loss draft account pending property rebuilding or repair to pay interest on those funds at a rate of at least 2% simple interest per annum, except as specified. The bill would require that interest to start accruing on the effective date of the bill, as specified. The bill would prohibit those financial institutions from imposing any fee or charge in connection with the maintenance or disbursement of hazard insurance proceeds held in a loss draft account pending rebuilding or repair of the real property that would result in an interest rate of less than 2% per annum being paid on the amounts held. The bill would specify that the above provisions do not apply to hazard insurance proceeds held in a loss draft account that are required by a state or federal regulatory authority to be placed by a financial institution other than a bank in a non-interest-bearing demand trust fund account of a bank. This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 103, Statutes of 2025.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 11 a.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 2652.).

  5. In Assembly. Concurrence in Senate amendments pending.

  6. Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 35. Noes 0. Page 2137.).

  7. Read second time. Ordered to Consent Calendar.

  8. From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

  9. Read second time and amended. Re-referred to Com. on APPR.

  10. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (June 24).

  11. From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 18). Re-referred to Com. on JUD.

  12. Referred to Coms. on B. & F.I. and JUD.

  13. In Senate. Read first time. To Com. on RLS. for assignment.

  14. Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 77. Noes 0.).

  15. Read second time. Ordered to third reading.

  16. Read second time and amended. Ordered returned to second reading.

  17. From committee: Amend, and do pass as amended. (Ayes 15. Noes 0.) (March 19).

  18. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (March 18). Re-referred to Com. on APPR.

  19. (Pending re-refer to Com. on APPR.)

  20. Assembly Rule 56 suspended. (Page 616.)

  21. Re-referred to Com. on B.&F.

  22. From committee chair, with author's amendments: Amend, and re-refer to Com. on B.&F. Read second time and amended.

  23. Referred to Com. on B.&F.

  24. From printer. May be heard in committee March 13.

  25. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 493 Harabedian Concurrence in Senate Amendments

Passed 77 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democratic 58001
Republican 18001
Unaffiliated 1000
Total 77002
% of votes cast 97%0%0%3%
How each member voted (79)
Member Party Vote
Ávila Farías — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Ahrens, Patrick Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Not Voting
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Carrillo, Juan Democratic Yea
Connolly, Damon Democratic Yea
Elhawary, Sade Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Garcia, Robert Democratic Yea
Gipson, Mike A. Democratic Yea
González, Mark Democratic Yea
Haney, Matt Democratic Yea
Harabedian, John Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Krell, Maggy Democratic Yea
Lee, Alex Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Patel, Darshana R. Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Ransom, Rhodesia Democratic Yea
Rivas, Robert Democratic Yea
Rodriguez, Celeste Democratic Yea
Rodriguez, Michelle Democratic Yea
Rogers, Chris Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Schultz, Nick Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Solache, Jr., José Luis Democratic Yea
Soria, Esmeralda Democratic Yea
Stefani, Catherine Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Yea
Castillo, Leticia Republican Yea
Chen, Phillip Republican Yea
Davies, Laurie Republican Yea
DeMaio, Carl Republican Yea
Dixon, Diane Republican Yea
Ellis, Stan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Gonzalez, Jeff Republican Not Voting
Hadwick, Heather Republican Yea
Hoover, Josh Republican Yea
Lackey, Tom Republican Yea
Macedo, Alexandra Republican Yea
Patterson, Joe Republican Yea
Sanchez, Kate Republican Yea
Ta, Tri Republican Yea
Tangipa, David J. Republican Yea
Wallis, Greg Republican Yea

Official roll call →

Consent Calendar 2nd AB493 Harabedian et al. Urgency Clause

Passed 35 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Republican 9001
Democratic 26004
Total 35005
% of votes cast 88%0%0%13%
How each member voted (40)
Member Party Vote
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Arreguín, Jesse Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Not Voting
Blakespear, Catherine S. Democratic Yea
Cabaldon, Christopher Democratic Yea
Caballero, Anna M. Democratic Yea
Cervantes, Sabrina Democratic Yea
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
McNerney, Jerry Democratic Yea
Menjivar, Caroline Democratic Yea
Padilla, Stephen C. Democratic Not Voting
Pérez, Sasha Renée Democratic Yea
Reyes, Eloise Gómez Democratic Not Voting
Richardson, Laura Democratic Yea
Rubio, Susan Democratic Yea
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Not Voting
Wahab, Aisha Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Not Voting
Choi, Steven S. Republican Yea
Dahle, Megan Republican Yea
Grove, Shannon Republican Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Ochoa Bogh, Rosilicie Republican Yea
Seyarto, Kelly Republican Yea
Strickland, Tony Republican Yea
Valladares, Suzette Martinez Republican Yea

Official roll call →

Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] with the recommendation: To Consent Calendar

Passed 12 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 1001
Democratic 11000
Total 12001
% of votes cast 92%0%0%8%
How each member voted (13)
Member Party Vote
Allen, Benjamin Democratic Yea
Arreguín, Jesse Democratic Yea
Ashby, Angelique V. Democratic Yea
Caballero, Anna M. Democratic Yea
Durazo, Maria Elena Democratic Yea
Laird, John Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wiener, Scott D. Democratic Yea
Niello, Roger W. Republican Yea
Valladares, Suzette Martinez Republican Not Voting

Official roll call →

AB 493 Harabedian Third Reading Urgency

Passed 77 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Democratic 57002
Republican 18001
Unaffiliated 2000
Total 77003
% of votes cast 96%0%0%4%
How each member voted (80)
Member Party Vote
Ávila Farías — Yea
Essayli — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Ahrens, Patrick Democratic Yea
Alvarez, David Democratic Not Voting
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Carrillo, Juan Democratic Yea
Connolly, Damon Democratic Yea
Elhawary, Sade Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Garcia, Robert Democratic Yea
Gipson, Mike A. Democratic Yea
González, Mark Democratic Yea
Haney, Matt Democratic Yea
Harabedian, John Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Krell, Maggy Democratic Yea
Lee, Alex Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Patel, Darshana R. Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Ransom, Rhodesia Democratic Yea
Rivas, Robert Democratic Yea
Rodriguez, Celeste Democratic Yea
Rodriguez, Michelle Democratic Yea
Rogers, Chris Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Schultz, Nick Democratic Yea
Sharp-Collins, LaShae Democratic Yea
Solache, Jr., José Luis Democratic Yea
Soria, Esmeralda Democratic Yea
Stefani, Catherine Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Wicks, Buffy Democratic Not Voting
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Yea
Castillo, Leticia Republican Yea
Chen, Phillip Republican Yea
Davies, Laurie Republican Not Voting
DeMaio, Carl Republican Yea
Dixon, Diane Republican Yea
Ellis, Stan Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Gonzalez, Jeff Republican Yea
Hadwick, Heather Republican Yea
Hoover, Josh Republican Yea
Lackey, Tom Republican Yea
Macedo, Alexandra Republican Yea
Patterson, Joe Republican Yea
Sanchez, Kate Republican Yea
Ta, Tri Republican Yea
Tangipa, David J. Republican Yea
Wallis, Greg Republican Yea

Official roll call →

Do pass as amended.

Passed 15 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democratic 11000
Republican 4000
Total 15000
% of votes cast 100%0%0%0%
How each member voted (15)
Member Party Vote
Arambula, Joaquin Democratic Yea
Calderon, Lisa Democratic Yea
Caloza, Jessica Democratic Yea
Elhawary, Sade Democratic Yea
Fong, Mike Democratic Yea
González, Mark Democratic Yea
Hart, Gregg Democratic Yea
Pacheco, Blanca Democratic Yea
Pellerin, Gail Democratic Yea
Solache, Jr., José Luis Democratic Yea
Wicks, Buffy Democratic Yea
Dixon, Diane Republican Yea
Hadwick, Heather Republican Yea
Sanchez, Kate Republican Yea
Ta, Tri Republican Yea

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations]

Passed 8 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 2000
Democratic 6001
Total 8001
% of votes cast 89%0%0%11%
How each member voted (9)
Member Party Vote
Fong, Mike Democratic Yea
Krell, Maggy Democratic Yea
Rodriguez, Michelle Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Soria, Esmeralda Democratic Not Voting
Valencia, Avelino Democratic Yea
Chen, Phillip Republican Yea
Dixon, Diane Republican Yea

Official roll call →

Subjects

finance housing
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Frequently asked questions

What does AB 493 do?
Existing law, the California Residential Mortgage Lending Act, regulates persons engaging in the business of making residential mortgage loans or servicing of residential mortgage loans, as administered by the Commissioner of Financial Protection and Innovation. A willful violation of any provision of the act constitutes a crime, as specified. The act requires a trust account to be placed in a non-interest-bearing account in a federally insured depository institution, a federal home loan bank, or other similar government-sponsored enterprise, except as specified. This bill would authorize a financial institution, as defined, to deposit hazard insurance proceeds in an interest-bearing account in a federally insured depository institution, a federal home loan bank, a federal reserve bank, or another similar government-sponsored enterprise. Existing law requires a financial institution that makes loans upon the security of real property containing only a one- to four-family residence in this state or purchases obligations secured by the property and that receives money in advance for payment of taxes and assessments on the property, for insurance, or for other purposes relating to the property to pay interest on those amounts to the borrower, as specified. Existing law prohibits those financial institutions from imposing any fee or charge in connection with the maintenance or disbursement of money received in advance for the payment of taxes and assessments on real property securing loans made by the financial institution, or for the payment of insurance, or for other purposes relating to that real property, which would result in an interest rate of less than 2% per annum being paid on the moneys received. Existing law defines the term financial institution for purposes of those provisions to include, among other things, savings associations. This bill would require a financial institution that makes loans or purchases obligations as described above and that holds hazard insurance proceeds in a loss draft account pending property rebuilding or repair to pay interest on those funds at a rate of at least 2% simple interest per annum, except as specified. The bill would require that interest to start accruing on the effective date of the bill, as specified. The bill would prohibit those financial institutions from imposing any fee or charge in connection with the maintenance or disbursement of hazard insurance proceeds held in a loss draft account pending rebuilding or repair of the real property that would result in an interest rate of less than 2% per annum being paid on the amounts held. The bill would specify that the above provisions do not apply to hazard insurance proceeds held in a loss draft account that are required by a state or federal regulatory authority to be placed by a financial institution other than a bank in a non-interest-bearing demand trust fund account of a bank. This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors AB 493?
AB 493 is sponsored by Harabedian, John (Democratic).
What is the current status of AB 493?
This bill has been sent to the executive. Introduced February 10, 2025. It awaits signature.
Where can I track AB 493?
Track AB 493 free on One Click Politics — get push/email alerts when it moves.

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