(SACRAMENTO, CA) - Today, Assemblymember John Harabedian (D-Pasadena) joined Governor Newsom in announcing 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.
“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.”
“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,” said Governor Newsom.
Similar to an announcement last week by five major lenders, these financial 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.
Earlier this month, Assemblymember Harabedian introduced AB 238 to provide one year of mortgage relief to wildfire victims:
- AB 238, Mortgage Deferment Act: Under the Mortgage Deferment Act, borrowers are entitled to request an initial forbearance of their monthly mortgage payments for up to 360 days. This bill is inspired by the CARES Act, which provided mortgage payment forbearance to those experiencing financial hardship during the COVID-19 national emergency.
AB 238 will be heard in Assembly policy committees during the spring.
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