JPMorgan Chase and Bank of America will ease mortgage repayment terms for customers affected by the Los Angeles wildfires as residents grapple with one of the most devastating natural disasters in the city's history. Preparations are underway.
Parent company JPMorgan announced Monday that Chase Home Lending will offer disaster forgiveness to mortgage customers affected by the wildfires. BofA also said its program includes the possibility of mortgage forgiveness tailored to customers' needs.
Forbearance allows borrowers to temporarily suspend or reduce their loan payments.
Borrowers often seek this assistance from banks to alleviate restructuring costs. But the strain on the industry's profitability from unpaid loans could also prompt lenders to exit natural disaster-prone markets.
“The Los Angeles wildfires highlight the urgent need for financial institutions to prioritize climate risk management,” said Laurent Billard, Moody's Banking Industry Practice Lead.
“Banks with significant exposure to affected sectors in their loan portfolios need to understand, identify, measure and manage their climate risk exposure through scenario analysis to ensure more resilient and sustainable financial operations. ”
At least 24 people died in the fire.
