California expands mortgage relief for Los Angeles wildfire survivors

Governor Gavin Newsom announced an expansion of mortgage relief that will provide up to 12 months of mortgage payments and raise the cap to $100,000 for homeowners affected by the January 2025 Los Angeles wildfires.

Governor Gavin Newsom announced an expansion of mortgage relief for homeowners affected by the January 2025 Los Angeles wildfires. The change increases state support to 12 months of mortgage payments paid directly to servicers and raises the maximum assistance to $100,000. The January 2025 fires killed 31 people and destroyed about 13,000 homes, and many residents have reported ongoing obstacles to rebuilding. Analysts and officials have pointed to insurance gaps, permitting complexity, financing shortfalls and labor shortages as factors slowing recovery. Program details: - The expansion provides up to 12 months of mortgage payments, paid directly to mortgage servicers, according to Newsom's office. - The maximum payment cap is raised to $100,000, up from a previous $20,000, and the program is enlarged from three months to a full year of assistance. - Eligibility is reported to include homeowners who are current on their mortgage, in forbearance, or behind on payments, and income limits have been increased. - The state previously passed AB 238 to extend mortgage forbearance and has worked with major lenders on relief measures. - Newsom's office provided a website and phone number for information and said affected homeowners should apply, as reported. Summary: The expansion increases direct mortgage payments and raises the assistance cap, measures officials say are intended to help homeowners still facing mortgage obligations on damaged properties. Analysts say rebuilding remains slow because of insurance, permitting and financing challenges. Undetermined at this time.