Led by the California Mortgage Bankers Association, five lenders have made commitments to provide mortgage relief for the victims of the California wildfires.
The five institutions are Bank of America, Citibank, JPMorgan Chase, U.S. Bank, and Wells Fargo.
The banks will offer up to a 90-day grace period on mortgage payments, 90-day waiver of late fees, and 60- to 90-day moratorium on new foreclosures for property owners whose structures were damaged or destroyed. In addition, institutions will not report late payments of forborne amounts to credit agencies.
“We will continue to work with the Governor’s Office and the Legislature as they evaluate additional needs and strategies for relief and recovery,” the California MBA said. “Mortgage bankers will remain a key partner in the weeks, months, and years ahead as Los Angeles residents work to rebuild and restore their communities.”
Governor Gavin Newsom’s administration also is working with other financial institutions, and external stakeholders, which in addition to the California MBA also include the California Bankers Association, and the California Credit Union League, all of which have expressed their support for these relief efforts. In addition, the Department of Financial Protection and Innovation is surveying state-chartered financial institutions to confirm additional commitments in the coming days.
“These financial protections will enable residents to concentrate on taking care of their immediate needs rather than worrying about paying their mortgage bills,” Newsom said.
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