Newsom reaches agreement with major lenders for mortgage assistance during wildfire emergency

Recently, more than 12,000 homes, businesses, and other structures were confirmed as either damaged or destroyed in the Eaton and Palisades fires. These areas already faced a significant housing shortage. To address the challenges faced by residents affected by this, Governor Gavin Newsom announced an emergency program involving major lenders in California to provide mortgage relief.

The program offers several key benefits to homeowners, including a 90-day grace period on mortgage payments, a waiver of late fees for 90 days, and a 60- to 90-day moratorium on new foreclosures for property owners whose properties were affected by the wildfires in Los Angeles and Ventura counties. Governor Newsom expressed hope that this financial assistance would alleviate some of the burdens faced by survivors, allowing them to focus on their immediate needs in the aftermath of the devastating fires.

Financial institutions such as Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo have committed to providing mortgage relief to those impacted by the fires. Discussions are ongoing with other financial entities to expand the assistance to more homeowners. The California Bankers Association, the California Credit Union League, and the California Mortgage Bankers Association are working together with state agencies to coordinate efforts to assist homeowners in need.

Under this relief program, affected homeowners will have access to streamlined processes for requesting assistance without the need for extensive paperwork, relief from immediate repayment obligations at the end of the forbearance period, and a moratorium on new foreclosures or evictions for 60 days at a minimum. Additionally, qualified residents in specific ZIP codes in Los Angeles County will benefit from this initiative, ensuring that assistance reaches those in the most affected areas.

The program aims to provide relief to homeowners promptly through the lenders holding the mortgages. By offering protections against foreclosure, evictions, and late fees, this initiative seeks to alleviate some of the financial burdens faced by residents in the wake of the tragic wildfires. Governor Newsom emphasized that the state remains committed to assisting Californians recovering from the catastrophic impact of the fires and that ongoing efforts with financial institutions and state agencies will continue to support those in need.