Governor Gavin Newsom has announced that five major lenders have agreed to provide mortgage relief for victims of the recent firestorms in Los Angeles and Ventura Counties. The financial institutions involved are Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo. These banks will offer a 90-day grace period on mortgage payments, waive late fees for 90 days, and impose a moratorium on new foreclosures for up to 90 days for affected property owners.
The relief measures include a streamlined process for requesting initial aid without requiring forms or documents. Additionally, there will be no immediate repayment required for unpaid amounts at the end of the forbearance period. Governor Newsom emphasized the importance of these measures by stating: “After so much trauma, we hope this deal will provide thousands of survivors a measure of relief. These financial protections will enable residents to concentrate on taking care of their immediate needs rather than worrying about paying their mortgage bills.”
Further efforts by the state government include engagement with other financial entities and collaboration with organizations like the California Bankers Association and the California Mortgage Bankers Association. The Department of Financial Protection and Innovation is also working to confirm additional commitments from state-chartered financial institutions.
Qualified borrowers can avail themselves of various types of assistance such as tax relief, expedited rebuilding processes under suspended environmental regulations, temporary housing solutions, debris removal initiatives, protection against price gouging and real estate speculation, direct state funding proposals amounting to $2.5 billion for emergency response efforts, and educational support for displaced students.
Residents seeking assistance can access resources through CA.gov/LAfires or apply for disaster assistance via DisasterAssistance.gov or FEMA’s hotline.
