Governor Newsom announces commitments from state banks and credit unions to provide mortgage relief for firestorm survivors

What you need to know: Governor Newsom announced additional commitments to provide mortgage relief for property owners whose structures were damaged or destroyed by the LA firestorms, adding state-chartered banks, credit unions, and mortgage lenders and servicers, as well as additional federally chartered institutions, to an existing commitment announced last week with five major mortgage lenders.LOS ANGELES — Governor Gavin Newsom today announced that 270 state-chartered banks, credit unions, and mortgage lenders and servicers have committed to providing mortgage relief for property owners in designated fire areas as a result of the devastation in Los Angeles and Ventura Counties. Similar to an announcement last week by five major lenders, these institutions have committed to offering impacted homeowners a 90-day forbearance of their mortgage payments, without reporting these payments to credit reporting agencies, and the opportunity for additional relief. One additional federally chartered institution has also joined in the commitment.

“Today’s announcement by federal and California-based lenders helps provide survivors with the time and relief to address their immediate needs, rather than worrying about paying mortgage bills. I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm. California will continue working with all stakeholders to support survivors, expedite recovery, and provide relief.”
Governor Gavin Newsom

The commitments were made by 270 state-chartered institutions, with collaboration from the California Bankers Association, the California Credit Union League, and the California Mortgage Bankers Association, which have expressed their support for these relief efforts. 

“Credit unions are deeply committed to supporting their members and communities by offering immediate financial relief,” said Scott Simpson, President and CEO, California & Nevada Credit Union Leagues. “We’re working closely with Governor Newsom's office to provide assistance and long-term recovery options — including mortgage forbearance and flexible payment options — to ensure Southern Californians can focus on rebuilding their lives without the added burden of financial worries. These wildfires have caused immense trauma, and it’s imperative we step up to provide a safety net for those affected, administering continued relief and compassionate financial support as they navigate this challenging time. By offering a lifeline to credit union members who need it most, we can help prioritize their current financial needs and empower them on the long road to recovery. Credit unions are committed to being a source of strength and stability during this challenging time.”

“Our communities are hurting, and providing immediate financial relief is essential to our long-term rebuilding. I’m proud to join Governor Newsom in announcing mortgage payment forbearance through these financial institutions,” said Assemblymember John Harabedian (D-Pasadena). “The work is far from done, and I’m committed to partnering with Governor Newsom, Speaker Rivas, and Pro Tem McGuire to deliver the support wildfire survivors need.”

“It is encouraging to see voluntary mortgage forbearance being offered to victims of the Palisades and Eaton Fires,” said Assemblymember Jacqui Irwin (D-Thousand Oaks). “These programs provide immediate relief to those impacted. Assemblymember Harabedian and I have introduced legislation for long-term relief and remain committed to ensuring every fire victim receives the time they need to recover from this disaster.”

“The Southern California mega-fires demand coordinated efforts to ensure all impacted Californians receive relief during these devastating times,” said Senator 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. This relief offers a much-needed respite for those facing a long recovery, and I’m grateful to California lenders for understanding the extraordinary hardships their customers are enduring.”

As part of today’s announcement, these financial institutions will offer their qualified borrowers:

• 90-day mortgage payment forbearance periods, streamlined processes for requesting initial relief without submitting forms or documents, payment options that do not require immediate repayment of unpaid amounts (i.e., no balloon payments) at the end of the forbearance period, and the opportunity for additional relief.
• Relief from mortgage-related late fees accruing during the forbearance period for 90 days.
• Protection from new foreclosures or evictions for at least 60 days.
• Institutions will not report late payments of forborne amounts to credit agencies

The relief is available to qualified residents who are customers of these institutions in Los Angeles County in the following ZIP codes: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91104, 91106, 91107, or 93536. Not all state-chartered or other institutions operating in the state serve customers in the designated zip codes.

Borrowers must contact their mortgage servicer to obtain relief.

A copy of the commitments can be found here.

Supporting recovery, protecting survivors 

Governor Newsom has issued a number of executive orders in response to the Los Angeles fire storms to help aid in rebuilding and recovery, create more temporary housing, and protect survivors from exploitation and price gouging:

• Providing tax relief to those impacted by the fires. California postponed the individual tax filing deadline to October 15 for Los Angeles County taxpayers. Additionally, the state extended the January 31, 2025, sales and use tax filing deadline for Los Angeles County taxpayers until April 30 — providing critical tax relief for businesses. 
• Rebuilding Los Angeles faster and stronger. Governor Newsom issued an executive order to streamline the rebuilding of homes and businesses destroyed — suspending permitting and review requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act.
• Fast-tracking temporary housing. To help provide necessary shelter for those immediately impacted by the firestorms, the Governor issued an executive order to make it easier to streamline construction of accessory dwelling units, allow for more temporary trailers and other housing, and suspend fees for mobile home parks. 
• Mobilizing debris removal and cleanup. With an eye toward recovery, the Governor directed fast action on debris removal work and mitigating the potential for mudslides and flooding in areas burned. He also signed an executive order to allow expert federal hazmat crews to start cleaning up properties as a key step in getting people back to their properties safely.
• Safeguarding survivors from price gouging. Governor Newsom expanded restrictions to protect survivors from illegal price hikes on rent, hotel and motel costs, and building materials or construction. Report violations to the Office of the Attorney General here.
• Directing immediate state relief. The Governor is proposing California provide at least $2.5 billion in additional funding for ongoing emergency response efforts and to jumpstart recovery efforts for Los Angeles. 
• 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.
• Protecting victims from real estate speculators. The Governor issued an executive order to protect firestorm victims from predatory land speculators making aggressive and unsolicited cash offers to purchase victims’ property.

For those Californians impacted by the firestorms in Los Angeles, there are resources available.

Get help today

Californians can go to CA.gov/LAfires – a hub for information and resources from state, local and federal government. 

Individuals and business owners who sustained losses from wildfires in Los Angeles County can apply for disaster assistance:

• Online at DisasterAssistance.gov
• By calling 800-621-3362
• By using the FEMA smart phone application
• Assistance is available in over 40 languages
• If you use a relay service, such as video relay service (VRS), captioned telephone service or others, give FEMA the number for that service.