California Gov. Gavin Newsom has announced a commitment from more than 160 lending institutions to provide mortgage relief for survivors impacted by the 2025 Los Angeles firestorms.
The lenders 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 the law Newsom signed last year. Newsom said that impacted borrowers may request this additional forbearance by contacting their servicer and providing verbal rationale – no paperwork or forms are required.
“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,” Newsom said.
The 2025 Palisades fire began on Jan. 7 and, driven by hurricane-force winds, engulfed more than 23,000 acres, destroying large swaths of Malibu and Topanga overnight. In Altadena, the Eaton fire devastated communities, destroying more than 9,000 buildings.
The fires raged on for nearly a month, until they were contained on Jan. 31, 2025.
Additional Forbearance for Homeowners
Newsom said the commitment provides additional forbearance, subject to approval by investors such as Fannie Mae and Freddie Mac, and consistent with the terms of his January 2025 agreement with banks. That includes offering payment options that do not include lump-sum (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.
Over the past year, Newsom has continued to engage with lenders on additional support for survivors nearing the end of their forbearance period, the state said. Lenders have stepped up to collaborate on solutions, providing those experiencing hardship with additional flexibility as they continue their road to recovery.
Building on his announcement in January 2025 of commitments from five major lenders and more than 420 other financial institutions to offer forbearance for impacted customers, Newsom signed into law AB 238 (Harabedian), which extended forbearance for up to a maximum of 12 months from the date of request for borrowers experiencing financial hardship.
These announced commitments expand on that relief.
Newsom said that any consumer 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 here.
In January, Newsom announced that lenders and financial institutions, including Bank of America and member institutions of the California Mortgage Bankers Association, are developing new lending products specifically for LA firestorm recovery. Those products will help homeowners finance the rebuilding of homes destroyed in the fires.
Additionally, to help more homeowners qualify for construction loans, Newsom said he is exploring creative financing mechanisms to address the residential rebuild funding gap, which could integrate with private lender offerings. Over the coming months, the state will work with private lenders, philanthropic partners, state agencies, and the legislature to develop the proposed fund, Newsom said.
Many survivors lost community spaces, historic neighborhood pillars, and schools that made communities feel like home, Newsom said. From the start, Newsom and his administration have worked with survivors to help communities recover and rebuild stronger.
Ways to Accelerate Rebuilding
Newsom has helped accelerate the rebuilding of communities by:
Fast-tracking permitting and rebuilding. Governor Newsom issued an executive order to streamline the rebuilding of homes and businesses — suspending permitting and review requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act. The governor also issued an executive order further cutting red tape by reiterating that permitting requirements under the California Coastal Act are suspended for rebuilding efforts and directing the Coastal Commission not to issue guidance or take any action that interferes with or conflicts with the governor’s executive orders. Additionally, the governor issued an executive order removing bureaucratic barriers, extending deadlines, and providing critical regulatory relief to help fire survivors rebuild, access essential services, and recover more quickly.
Providing tax and mortgage relief to those impacted by the fires. California postponed the individual tax filing deadline to October 15 for Los Angeles County taxpayers. Governor Newsom suspended penalties and interest on late property tax payments for a year, effectively extending the state property tax deadline. The Governor also worked with state– and federally-chartered banks that have committed to providing mortgage relief for survivors in certain zip codes, and later extended and expanded on that relief through legislation. He also announced a $125 million mortgage relief package for homeowners impacted by the Los Angeles fires and other recent disasters, which was adjusted to reach even more fire survivors. The Governor recently announced the program will be further expanded in the coming weeks.
Suspending building codes. In addition to issuing multiple executive orders, Governor Newsom has also helped speed permitting and rebuilding by suspending implementation of new building codes for residents rebuilding from the fires to create certainty and avoid the need to modify applications and lengthen the permitting process. This includes allowing homeowners who built their homes to the standards in the 2019 Building Code to use their previously approved plans, and a suspension of building codes that would have gone into effect on January 1, 2026.
Safeguarding survivors from speculators and price gouging. Governor Newsom expanded restrictions to protect survivors from illegal price hikes on rent, hotel and motel costs, and building materials or construction. The Governor also issued an executive order to protect firestorm victims from predatory land speculators making aggressive and unsolicited cash offers to purchase their property.
Getting kids back in the classroom. Governor Newsom signed an executive order to quickly assist displaced students in the Los Angeles area and bolster schools affected by the firestorms.
The state said it will continue aiding those affected by natural disasters now and in the future.
The post More than 160 Lenders Commit to Extend Mortgage Relief for LA Fire Survivors first appeared on The MortgagePoint.
