California Governor Gavin Newsom (D) announced Saturday that five major banks have committed to giving homeowners affected by the wildfires a 90-day moratorium on mortgage payments.
The financial institution has agreed not to report these payments to the credit bureaus. For customers whose buildings were damaged by fire, the company will waive mortgage-related late fees for 90 days and protect against new foreclosures and evictions for at least 60 days.
The government secured commitments from Bank of America, Citi, JPMorgan Chase, U.S. Bank and Wells Fargo.
“After so much trauma, we hope this agreement will bring some measure of relief to thousands of survivors. These financial protections will help residents worry about paying their mortgages. We thank the financial institutions that are providing support to Californians as they recover from this devastating firestorm.” said in a statement, announcing the grace period.
Borrowers must contact a mortgage servicer for relief. This agreement applies to customers in Los Angeles County zip codes 90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91104, 91106, 91107, and 93536.
The announcement comes as wildfires have destroyed much of the Los Angeles area. The largest fire, the Palisades, was 52% contained as of Sunday night. The Eaton Fire is 81 percent contained.
