California MBA backs $100M rebuild fund in Newsom budget

A revised California state budget proposal includes $100 million for the Southern California Rebuild Fund. The funding aims to increase access to construction financing for homeowners affected by last year’s Southern California wildfires. In many damaged areas, rebuilding replacement costs have grown faster than insurance coverage limits, creating financing gaps that can delay reconstruction and affect mortgage performance. The California Mortgage Bankers Association supports the investment as a move beyond temporary relief toward realistic pathways for families to rebuild homes and communities. The proposal is intended to create tools that help families access financing, move forward with rebuilding, and return to their communities. The group has also focused on mortgage forbearance effectiveness, emphasizing short-term assistance without a long-term plan.

"The proposed funding is designed to expand access to construction financing for homeowners affected by last year's Southern California wildfires by helping to bridge the gap between insurance payouts and actual rebuilding costs. In many fire-damaged areas, replacement costs have risen faster than insurance coverage limits, leaving borrowers with shortfalls that can stall reconstruction and strain mortgage performance."

"California MBA strongly supports the Governor's proposed investment in the Southern California Rebuild Fund because wildfire survivors need more than temporary relief, they need realistic pathways to rebuild their homes and communities, Paul Gigliotti, CEO of the California Mortgage Bankers Association, said in a statement. Many homeowners are facing a major financing gap between insurance coverage and actual reconstruction costs."

"This proposal recognizes that challenge and creates meaningful tools to help families access financing, move forward with rebuilding, and return to their communities. Earlier this week, Gigliotti made an appearance on the HousingWire Daily podcast and spoke with Editor in Chief Sarah Wheeler about CMBA's efforts in this area."

"CMBA testified at a hearing that forbearance offers important short-term assistance but is not a long-term solution, and extending it without a defined path forward could increase financial"

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