Newsom says state banks and credit unions will offer mortgage relief for fire survivors
More than 270 state banks, credit unions and lenders will provide mortgage relief for property owners impacted by the wildfires in Los Angeles and Ventura counties, Gov. Gavin Newsom announced on Thursday, Jan. 23.
Homeowners will have a 90-day forbearance on their mortgage payments, without reporting these payments to credit reporting agencies and the opportunity for additional relief.
The governor noted this decision will provide survivors with the time and relief to address their immediate needs.
“I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm,” Newsom said in a statement. “California will continue working with all stakeholders to support survivors, expedite recovery and provide relief.”
As part of the announcement, qualified borrowers will receive the following:
— 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;
— Relief from mortgage-related late fees accruing during the forbearance period for 90 days;
— Protection from new foreclosures or evictions for at least 60 days; and
— Institutions will not report late payments of forborne amounts to credit agencies
Relief is available for qualified residents living in these L.A. County ZIP codes: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91104, 91106, 91107 or 93536.
Additionally, the governor’s office noted that not all state-chartered or other institutions operating in the state serve customers in the designated zip codes.
California Bankers Association, the California Credit Union League and the California Mortgage Bankers Association have expressed their support for these relief efforts.
Borrowers must contact their mortgage servicer to obtain relief.
“These wildfires have caused immense trauma, and it’s imperative we step up to provide a safety net for those affected, administering continued relief and compassionate financial support as they navigate this challenging time,” Scott Simpson, president and CEO of California and Nevada Credit Union Leagues, said in a statement.
“By offering a lifeline to credit union members who need it most, we can help prioritize their current financial needs and empower them on the long road to recovery,” Simpson added.
The announcement is similar to action taken by five major banks last week — Bank of America, Citi, JPMorgan Chase, U.S. Bank and Wells Fargo.
State Sen. Sasha Renée Pérez (D-Glendale), who represents communities impacted by the Eaton Fire, supported Newsom’s action.
“This relief offers a much-needed respite for those facing a long recovery, and I’m grateful to California lenders for understanding the extraordinary hardships their customers are enduring,” she said in a statement.
Newsom has also extended the state tax filing deadline to Oct. 15 for L.A. county residents. Under another order, homeowners have until April 2026 to file their property taxes.