California Gov. Gavin Newsom said a group of major banks have agreed to extend mortgage relief for Los Angeles wildfire victims, as the area struggles to rebuild one year after the devastating blazes.
Wells Fargo & Co., JPMorgan Chase & Co., U.S. Bancorp and Citigroup Inc. will streamline requests for an additional 90-day forbearance period, allowing borrowers to apply verbally without paperwork, Newsom said on a press release Tuesday. Bank of America Corp. announced in November that it will offer qualifying borrowers up to two additional years of forbearance.
Related: Morningstar: A Year Later, LA Wildfires Were ‘Significant Stress Event’ for Insurance
Most lenders limit forbearance to 12 months under a California law that expanded an emergency agreement the state had reached with banks in January 2025. Wells Fargo, JPMorgan, Citi and U.S. Bancorp didn’t immediately reply tor a request for further comment.
Last year, the Intercontinental Exchange Inc. estimated that there was $11 billion in outstanding mortgage debt in the path of the fires.
Newsom, a termed out governor who’s considering a presidential run, has faced renewed criticism from the White House and other political adversaries for his handling of the catastrophic wildfires, which tore through large swaths of Southern California last year and killed at least 31 people. Newsom, in turn, has blasted the White House for failing to send California’s disaster aid request to Congress.
Related: Insurance Payments Now at $22.4B From LA Wildfires One Year Ago
On Tuesday, Newsom also announced he will work with banks, philanthropic partners and lawmakers on a new financing fund that would complement private construction loans and help close insurance shortfalls that have stalled rebuilding. He’s also expanding eligibility for its CalAssist Mortgage Relief Program, which provides grants covering up to three months of mortgage payments. The state has so far paid $5.98 million to 732 households, mostly fire survivors.
“I’m deeply grateful to our financial partners who are stepping up to help provide financial relief to those who have lost so much,” Newsom said. “This disaster was unprecedented, and it’s created challenges unlike anything we’ve seen before.”
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