California Gov. Jerry Brown signed into law a measure extending state income tax relief to borrowers with canceled or forgiven mortgage debt on Monday.

Assembly Bill 1393, introduced by Henry Perea, D-Fresno, amends California's tax code so that homeowners do not have to report as income certain debt that was canceled or forgiven by a lender due to principal reduction from a loan modification.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry