LOS ANGELES – California Gov. Gavin Newsom said the state now has a commitment from more than 160 lending institutions to provide mortgage relief for survivors impacted by the 2025 L.A. firestorms.
“These lenders have 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 AB 238, which the governor signed into law last year,” the governor’s office said in a statement. “Impacted borrowers may request this additional forbearance by contacting their servicer and providing verbal rationale – no paperwork or forms 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,” the statement continued.
Additional 90 Days
According to the state, the commitment provides additional forbearance of up to 90 days to impacted customers, subject to approval by investors such as Fannie Mae and Freddie Mac, and consistent with the terms of the governor’s January 2025 agreement with banks.
This 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.
The office added that the new agreement builds on the governor’s announcement in January 2025 of commitments from five major lenders and over 420 other financial institutions to offer forbearance for impacted customers, the Governor signed into law AB 238, which extended forbearance for up to a maximum of 12 months from the date of request for borrowers experiencing financial hardship.
