"As a result, the institutions agreed to offer forbearance for wildfire survivors for at least 90 days. Many lenders voluntarily offered forbearance for up to 12 months without reporting payment details to credit reporting agencies. It was later reported by an NPR affiliate, LAist, that some banks were not following the rules and that homeowners were facing demands for repayment."
"The outlet reported that the California Department of Financial Protection and Innovation (DFPI) received 121 complaints related to issues like balloon payments, credit reporting and insurance. Homeowners rebuilding after a disaster need all the support they can get, including grace in light of this incredible hardship, Newsom said in a statement. This bill is a welcome expansion of the forbearance agreements my administration secured earlier this year with major national and state-chartered lenders to offer mortgage relief to LA fire victims."
Lenders agreed to provide at least 90 days of mortgage forbearance to wildfire survivors, with many voluntarily extending relief up to 12 months without reporting payments to credit bureaus. LAist reported that some banks did not follow the forbearance rules, prompting homeowner demands for repayment and consumer issues. The California Department of Financial Protection and Innovation received 121 complaints about balloon payments, credit reporting and insurance. Governor Newsom described the bill as expanding earlier forbearance agreements and emphasized continued lender engagement. The CalAssist Mortgage Fund offers up to $20,000 or three months of mortgage payments for eligible disaster-affected residents between January 2023 and January 2025, while Redfin and CAL FIRE estimate extensive property and acreage losses.
Read at www.housingwire.com
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