California banks and credit unions offer mortgage relief to fire victims, Newsom announces
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Residents whose homes were damaged or destroyed by the Los Angeles firestorms are being offered mortgage relief by nearly 270 state-chartered banks, credit unions and other financial companies, Gov. Gavin Newsom said Thursday.
The announcement follows a decision by five major banks last week to offer mortgage relief to the fire victims.
“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.”
California’s Fair Plan, the state’s insurer of last resort, may be unable to pay billions in claims arising from the Los Angeles fires and may require a bailout that could ultimately be paid by homeowners statewide.
The relief includes a 90-day forbearance on mortgage payments and any associated late fees; no reporting of the delayed payments to credit bureaus; protection from new foreclosures or evictions for at least 60 days; and no balloon mortgage payments at the end of the reprieve.
Among the Southern California institutions participating in the program are Banc of California, Hanmi Bank, and PennyMac Loan Services.
“Banc of California ... is proud to work with the state to provide relief to homeowners and businesses affected by the tragic fires,” said Jared Wolff, CEO of Banc of California, in a statement.
The help is available to qualified Los Angeles County residents in the 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91104, 91106, 91107, or 93536 ZIP Codes. Borrowers must contact their mortgage servicer to obtain relief.
Last week, Wells Fargo, Bank of America, JP Morgan, Citibank and U.S. Bank announced mortgage relief programs.
The Palisades and Eaton fires have burned more than 37,000 acres, damaging or destroying over 18,000 homes and killing at least 28 people.
State Farm, California’s largest home insurer, said Thursday it will offer renewals to all of its 250,000 L.A. County residential policyholders slated to have been dropped, not just those in fire ravaged neighborhoods
Other actions taken by the governor include postponing the state tax filing deadline until Oct. 15 for Los Angeles County residents. Another executive order allows homeowners to wait until April 2026 to file this year’s property taxes without penalty. Longer deferrals of up to four years are also available by applying to the Los Angeles County Treasurer and Tax Collector.
Newsom also has issued an order to protect fire victims from predatory land speculators who make unsolicited and undervalued offers. Violations can be reported to the attorney general’s office at oag.ca.gov/report.
Newsom’s latest announcement was praised by several Southern California lawmakers, including Sen. Sasha Renée Pérez (D-Glendale).
“As the state senator for the Eaton Fire-affected communities, including Altadena’s historically African-American and working-class residents, I thank the governor for responding to calls for mortgage relief. I also appreciate the financial institutions that stepped up to provide this critical support,” she said in a statement.
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