By SDCN Editor
Los Angeles, CA–Governor Gavin Newsom Friday announced that five major financial institutions will offer mortgage relief for property owners in designated fire areas as a result of the devastation in Los Angeles and Ventura Counties.
These institutions have committed to offer impacted homeowners a 90-day forbearance of their mortgage payments, without reporting these payments to credit reporting agencies, and the opportunity for additional relief.
“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. I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm,” Governor Gavin Newsom stated.
The commitments were made by Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo. The governor is also engaging with other financial institutions, and collaborating with external stakeholders, such as the California Bankers Association, the California Credit Union League, and the California Mortgage Bankers Association, which have expressed their support for these relief efforts. The Department of Financial Protection and Innovation is surveying state-chartered financial institutions to confirm additional commitments in the coming days.
Financial institutions will offer qualified borrowers 90-day mortgage payment forbearance periods, streamlined processes for requesting initial relief without submitting forms or documents, payment options that do not require immediate repayment of unpaid amounts (i.e., no balloon payments) at the end of the forbearance period, and the opportunity for additional relief.
Impacted residents will receive relief from mortgage-related late fees accruing during the forbearance period for 90 days. They also will receive protection from new foreclosures or evictions for at least 60 days.
Institutions will not report late payments of forborne amounts to credit agencies
The relief is available to qualified residents in Los Angeles County in the zip codes: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91104, 91106, 91107, or 93536. Borrowers must contact their mortgage servicer to obtain relief.
Residents can receive information and resources at CA.gov/LAfires. Individuals and business owners who sustained losses from wildfires in Los Angeles County can apply for disaster assistance:
Online at DisasterAssistance.gov
