Some of California’s major lenders will offer waves of mortgage relief to Los Angeles County firestorm victims, in an emergency program announced by Gov. Gavin Newsom on Saturday.
Among the measures mapped out in the governor’s executive order:
–A 90-day grace period on mortgage payments;
–A 90-day waiver of late fees; and
–A 60- to 90-day moratorium on new foreclosures for property owners whose structures were damaged or destroyed by the deadly wildfires in Los Angeles and Ventura counties.
“After so much trauma, we hope this deal will provide thousands of survivors a measure of relief,” Newsom said in a statement. “These financial protections will enable residents to concentrate on taking care of their immediate needs rather than worrying about paying their mortgage bills. I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm.”
More than 12,000 homes, businesses and other structures have been confirmed as damaged or destroyed in the Eaton and Palisades fires — an area already in the midst of a deep affordable housing shortfall.
Saturday’s declaration is just the latest in a series issued by the governor in the aftermath of the fires. Most have dealt with housing, from fast-tracking the building of temporary structures to prohibiting L.A. County landlords from evicting a tenant and then re-letting that unit at a higher price.
The banks committing to the mortgage-relief program:
–Bank of America;
–Citi;
–JPMorgan Chase;
–U.S. Bank; and
–Wells Fargo.
Newsom said his administration is in talks with other financial institutions to seek similar help for homeowners is and collaborating with such agencies as the California Bankers Association, the California Credit Union League, and the California Mortgage Bankers Association.
Also, the Department of Financial Protection and Innovation, Newsom said, has launched a survey of state-chartered financial institutions to seek more commitments.
Under the new program, affected homeowners will also be afforded:
–Streamlined, form-free processes for requesting relief;
–Waiving of immediate repayment of “balloon payments” at the end of the forbearance period;
–Relief from mortgage-related late fees for at least 90 days;
–Protection from new foreclosures or evictions for at least 60 days; and
–No immediate reporting of late payments to credit agencies
The program will include qualified residents in Los Angeles County in the following ZIP codes: 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91104, 91106, 91107, or 93536.
The relief will be available directly via the lenders holding the mortgages.