California Gov. Gavin Newsom announced Sunday that five banks have committed to offer mortgage relief to victims of ongoing wildfires burning near Los Angeles. Photo by Allison Dinner/EPA-EFE
Jan. 19 (UPI) -- Five major banks have agreed to provide mortgage relief to customers affected by wildfires that have ravaged thousands of homes, businesses and structures in the Los Angeles area, California Gov. Gavin Newsom announced over the weekend.
Fires that erupted earlier this month have scorched tens of thousands of acres, killing at least 27 people and destroyed some 15,000 structures, with two of the blazes still uncontained as of Sunday night.
Newsom, in a Saturday statement, said that the Bank of America, Citi, JP Morgan Chase, U.S. Bank and Wells Fargo have committed to offering a 90-day mortgage payment forbearance period to property owners in designated fire areas in Los Angeles and Ventura counties.
Under the commitment, the banks will not report the missed payments to credit agencies, according to the Democratic governor's office.
Relief for mortgage-related late fees incurred during the 90-day period is also included in the commitment, along with protection from new foreclosures or evictions for at least 60 days, it said, adding that there will also be additional opportunities for relief.
The states is also engaging the California Bankers Association, the California Credit Union League and the California Mortgage Bankers Association, according to the governor's office, which said they "have expressed their support for these relief efforts."
The Department of Financial Protection and Innovation is currently surveying state-chartered financial institutions with expectations that additional commitments will be announced in the coming days.