California Gov. Gavin Newsom said some major banks have agreed to extend mortgage relief for Los Angeles wildfire victims as the region continues to struggle to rebuild a year after the devastating blazes.
Wells Fargo & What. , JPMorgan Chase & Co., USA banking company and Citigroup Inc. will streamline requests for an additional 90-day grace period, allowing borrowers to apply verbally without paperwork, Newsom said in a press release Tuesday. Bank of America company announced November It will provide eligible borrowers with a grace period of up to two years for deferment.
Under California law, most lenders limit forbearance periods to 12 months law The agreement expands on an emergency agreement the state reached with the bank in January 2025. Wells Fargo, JPMorgan Chase, Citigroup and U.S. Bank did not immediately respond to requests for further comment.
last year, intercontinental exchange company estimated There was $11 billion in outstanding mortgage debt at the time of the fire.
Newsom, an outgoing governor who is considering a run for president, has come under renewed criticism from the White House and other political opponents for his handling of catastrophic wildfires. Last year, wildfires swept through large areas of Southern California, killing at least 31 people. Newsom, in turn, criticized the White House for failing to send California’s request for disaster aid to Congress.
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On Tuesday, Newsom also announced that he would work with banks, philanthropic partners and lawmakers to establish a new financing fund that would supplement private construction loans and help close insurance gaps that have hindered rebuilding. He also expanded eligibility for the CalAssist mortgage relief program, which provides grants for up to three months of mortgage payments. So far, the state has paid $5.98 million to 732 families, most of them fire survivors.
“I am extremely grateful to our financial partners who are stepping up to provide financial assistance to those who have suffered tremendous losses,” Newsom said. “This disaster is unprecedented and creates challenges we have never seen before.”