Governor Newsom has signed Senate Bill 1146, sponsored by the California Mortgage Association, which will take effect on January 1, 2025, to address the usury issues created by the In re Moon decisions. The new law allows any licensed broker to negotiate or arrange a forbearance, modification, or extension of a loan with an interest rate over 10% while retaining the broker exemption from usury caps. This legislative fix comes after the 9th Circuit's Bankruptcy Appellate Panel limited lenders' options in In re Moon, requiring the original broker's involvement in forbearances to maintain the usury exemption, thus constraining lenders trying to help borrowers avoid foreclosure. With judicial appeals unsuccessful, SB 1146 provides a solution by expanding the broker exemption, offering more flexibility for lenders and borrowers alike.