More than 160 lending institutions made a commitment to provide mortgage relief for fire survivors whose homes were damaged or lost in the destructive January 2025 wildfires, Gov. Gavin Newsom announced Thursday.
Fire survivors can verify at dfpi.ca.gov/lafires/ which lenders may provide additional mortgage forbearance of up to 90 days, subject to investor approval such as Fannie Mae and Freddie Mac, and consistent with terms of the Newsom’s January 2025 agreement with banks.
Other aid lenders may provide includes payment options that do not include lump-sum, or balloon, payments, waiving any mortgage-related late fees that accrue during the forbearance period, and not reporting late payments on forbearance amounts to credit reporting agencies.
“Ensuring housing stability is essential. This commitment from financial institutions will help provide homeowners the time and flexibility to focus on their families, safety and rebuilding — with California continuing to work alongside survivors through every step of the recovery process,” Gov. Newsom said in a statement.
Lenders have agreed to streamline the process for requesting at least one additional forbearance period of up to 90 days for qualified borrowers, beyond the 12-month commitment required by AB 238, which Newsom signed into law last year.
Impacted borrowers may request this additional forbearance by contacting their servicer and providing verbal rationale — no paperwork or forms required.
Thursday’s announcement builds on Newsom’s efforts nearly one year ago.
Newsom secured commitments from five major lenders such as Bank of America, Citi, JP Morgan Chase, U.S. Bank and Wells Fargo, as well more than 420 other financial institutions to offer forbearance for impacted customers. The governor later signed AB 238, which extended forbearance for up to a maximum of 12 months from the date of request for borrowers experiencing financial hardship.
Any customers who believes their mortgage servicer is not complying with the law or their commitments can submit a complaint to the California Department of Financial Protection and Innovation at dfpi.ca.gov/submit-a- complaint/ .
To help more homeowners qualify for construction loans, the governor is exploring new ways to address the residential rebuild funding gap through private lenders, according to Newsom’s office.
In his message, Newsom once again called on the federal government to be a partner with California in their efforts to recover. Newsom has requested $34 million in federal aid for the communities of Pacific Palisades and Altadena, among other fire-ravaged communities.
On Wednesday, Environmental Protection Agency Administrator Lee Zeldin and Small Business Administration Administrator Kelly Loeffler came to Pacific Palisades, toured the community and spoke with local representatives such as Los Angeles Mayor Karen Bass and L.A. County Supervisor Kathryn Barger, who represents Altadena.
Federal officials described the meeting as “nothing but productive.”
In a statement, Barger said she appreciated the meeting, also describing it as a “productive, solutions-oriented conversation.”
She emphasized the county’s efforts to streamline the permitting process, noting take it takes 31 business days to complete permit reviews.
“Both administrators were engaged-sharing the President’s concerns while also listening to what I am seeing on the ground in Altadena. I emphasized that 53 percent of impacted residents have taken no action to rebuild, not because of permitting delays, but because they lack the capital to move forward — an issue exacerbated by delayed insurance payouts. Many families have not submitted plans or entered the County’s rebuilding pipeline and are now facing a serious financial crisis,” Barger said in her statement.
The federal officials’ visit came after President Donald Trump signed an executive order seeking to bypass local and state permitting process and requirements in order to expedite construction of these fire-torn areas.
Trump has criticized Newsom, Bass and California democrats for their policies, which he said have slowed down the recovery of Pacific Palisades and Altadena.
L.A. County and city officials have implemented measures to streamline the permitting process, among other measures to ensure fire survivors can rebuild their homes quickly, efficiently and safely.
Earlier this week, the Los Angeles City Council approved a $90 million program to waive fees associated with permits and other planning requirements for individuals seeking to rebuild in Pacific Palisades. The matter requires a final vote before it is enacted, which is likely to occur in February.
The county Board of Supervisors approved a motion Tuesday, instructing staff to monitor the Trump’s administrations actions related to the president’s executive order. The board’s motion additionally instructed staff to prepare legal action if local land-use powers are overridden by the federal government.
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