(The Center Square) – Five major banking institutions are offering mortgage relief for those affected by the recent wildfires in Los Angeles and Ventura Counties. The lenders, JPMorgan Chase, U.S. Bank, Wells Fargo, Bank of America and Citi, have committed to offer impacted homeowners a number forgiveness options:
Mortgage Payment Forbearance: These banks will be offering a 90-day forbearance period for mortgage payments. They will assist customers by streamlining the process, which will not require the submission of any forms or documentation.
Additionally, if needed, borrowers will have the opportunity to request additional relief if they can show continued hardship due to the wildfires. The repayment options will not require the immediate repayment of unpaid amounts in a lump sum at the end of the forbearance period.
Credit Reporting: The lenders have also committed to not furnishing any missed or late payments to credit reporting agencies. This only applies to those enrolled in the mortgage forbearance program during the forbearance period.
Moratorium on Foreclosures: For at least 60 days and a maximum of 90 days, the financial institutions will not initiate any foreclosure sales or evictions.
Fee Relief: These financial institutions have committed to waiving or refunding any mortgage related late fees or charges that have accrued during the forbearance period if the customers are enrolled in the mortgage forbearance program.
“After so much trauma, we hope this deal will provide thousands of survivors a measure of relief,” reads a statement from Gov. Gavin Newsom. “These financial protections will enable residents to concentrate on taking care of their immediate needs rather than worrying about paying their mortgage bills. I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm.”
The governor’s office also confirmed that the Department of Financial Protection and Innovation is surveying state-chartered financial institutions and will be confirming additional commitments in the coming days.
The relief is only available to California residents who are customers of the committed institutions in Los Angeles County and reside in the 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91104, 91106, 91107 or 93536 ZIP codes.
