California: Governor Newsom announces the commitment of over 160 lenders to extend mortgage relief for LA fire survivors
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Feb 5, 2026

Governor Newsom announces the commitment of over 160 lenders to extend mortgage relief for LA fire survivors

What you need to know:  More than 160 lending institutions have now committed to supporting LA fire survivors who lost their homes in the devastating wildfires.

LOS ANGELES – Continuing the state's work to help accelerate recovery, Governor Newsom today announced the commitment from more than 160 lending institutions to provide mortgage relief for fire 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 (Harabedian), which the Governor signed into law last year.  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.

Governor Gavin Newsom

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.

Vital mortgage relief for survivors

Over the past year, Governor Newsom has continued to engage with lenders on additional support for survivors nearing the end of their forbearance period. Lenders have stepped up to collaborate on solutions to provide those experiencing hardship additional flexibility as they continue down their road to recovery.

Building on the Governor's announcement in January 2025 of commitments from 5 major lenders and over 420 other financial institutions to offer forbearance for impacted customers, the Governor signed into law AB 238 (Harabedian), which extended forbearance for up to a maximum of 12 months from the date of request for borrowers experiencing financial hardship. Today's commitments expand on this relief. Any consumer who believes their mortgage servicer is not complying with the law or their commitments can submit a complaint to the California Department of Financial Protection and Innovation here.

Rebuilding financing

Today's commitments add to the state's consistent engagement with mortgage and banking industry leaders to ensure everyone does their part in this recovery. In January, the Governor announced that lenders and financial institutions, including Bank of America and member institutions of the California Mortgage Bankers Association, are developing new lending products specifically for LA firestorm recovery. These products will help homeowners finance the rebuilding of homes destroyed in the fires.

Additionally, to help more homeowners qualify for construction loans, the Governor is exploring creative financing mechanisms to address the residential rebuild funding gap that could integrate with private lender offerings. Over the coming months, the state will work with private lenders, philanthropic partners, state agencies, and the legislature to develop the proposed fund.

Accelerating recovery and protecting communities

Many survivors lost community spaces, historic neighborhood pillars, and schools that made communities feel like home. From the start, Governor Newsom and his administration have worked hand in hand with survivors to help communities recover and rebuild stronger. The Governor has helped accelerate the rebuilding of communities by:
  • Fast-tracking permitting and rebuilding. Governor Newsom issued an executive order to streamline the rebuilding of homes and businesses — suspending permitting and review requirements under the California Environmental Quality Act (CEQA) and the California Coastal Act. The Governor also issued an executive order further cutting red tape by reiterating that permitting requirements under the California Coastal Act are suspended for rebuilding efforts and directing the Coastal Commission not to issue guidance or take any action that interferes with or conflicts with the Governor's executive orders. Additionally, the Governor issued an executive order removing bureaucratic barriers, extending deadlines, and providing critical regulatory relief to help fire survivors rebuild, access essential services, and recover more quickly.
  • Providing tax and mortgage relief to those impacted by the fires. California postponed the individual tax filing deadline to October 15 for Los Angeles County taxpayers. Governor Newsom suspended penalties and interest on late property tax payments for a year, effectively extending the state property tax deadline. The Governor also worked with state– and federally-chartered banks that have committed to providing mortgage relief for survivors in certain zip codes, and later extended and expanded on that relief through legislation. He also announced a $125 million mortgage relief package for homeowners impacted by the Los Angeles fires and other recent disasters, which was recently adjusted to reach even more fire survivors.
  • Suspending building codes. In addition to issuing multiple executive orders, Governor Newsom has also helped speed permitting and rebuilding by suspending implementation of new building codes for residents rebuilding from the fires to create certainty and avoid the need to modify applications and lengthen the permitting process. This includes allowing homeowners who built their homes to the standards in the 2019 Building Code to use their previously approved plans, and a suspension of building codes that would have gone into effect on January 1, 2026, when not all homeowners will have finalized their plans to rebuild.
  • Safeguarding survivors from speculators and price gouging. Governor Newsom expanded restrictions to protect survivors from illegal price hikes on rent, hotel and motel costs, and building materials or construction. The Governor also issued an executive order to protect firestorm victims from predatory land speculators making aggressive and unsolicited cash offers to purchase their property.
  • Getting kids back in the classroom. Governor Newsom signed an executive order to quickly assist displaced students in the Los Angeles area and bolster schools affected by the firestorms.

California steps up as federal government falls short

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California will continue aiding those affected by natural disasters now and in the future. This administration will not leave any Californian behind. However, this work cannot be continued without the support of the federal government.

In addition to taking action to speed rebuilding, the Governor is also standing up for the Altadena, Palisades, and Malibu communities by calling out the White House for failing to approve long-term disaster funding for survivors of last year's catastrophic Los Angeles wildfires.

The Governor, who recently went to Washington, D.C in early December to advocate for survivors, renewed his call for immediate approval of the disaster supplemental, urging Congress and the President to deliver the same compassion and urgency that have been extended to other communities across the nation. This is the fourth request for funding since February, when President Trump promised he would "take care" of survivors.

The federal government plays a critical role as a partner to the state in this long-term recovery effort. Funding in this supplemental appropriation would:
  • Fund the rebuilding of schools, childcare centers, homes, and vital community facilities. This helps thousands of working families, veterans who lost homes, and nearly thousands of students displaced from their schools.
  • Keep small businesses open, support the economy, and maintain jobs. LA's small businesses and family-owned enterprises are the backbone of our local and national economy. Disaster loans and grants will keep them open, preserve thousands of jobs, and spur wider economic recovery — benefiting Americans who may never set foot in Los Angeles but rely on its goods, services, and culture.
  • Restore damaged water systems, rebuild responder infrastructure, and improve air quality monitoring. This protects not only LA's population but the tens of millions who travel, conduct business, and interact with the region each year.

For more information visit ca.gov/lafires.

Housing and homelessness (https://www.gov.ca.gov/category/content-types/housing-and-homelessness/), Press releases (https://www.gov.ca.gov/category/press-releases/), Recent news (https://www.gov.ca.gov/category/recent-news/)

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