California eases mortgage burdens for wildfire victims with new relief measures

Struggling homeowners get a lifeline as major banks and state programs step in. Could this turn the tide for wildfire recovery?

, and Administrator

2026 January 7 . 8:04 PM

1 min read

In this image in the center there is a building and poles, street lights, trees and some vehicles... — In this image in the center there is a building and poles, street lights, trees and some vehicles on the right side and left side. At the bottom there is walkway and grass and fire extinguisher, and at the top there is sky.

California eases mortgage burdens for wildfire victims with new relief measures

California Governor Gavin Newsom has announced new financial support for Los Angeles wildfire victims. Major banks will extend mortgage relief, while a fresh financing fund is being developed to aid rebuilding efforts. The move comes as affected homeowners face an estimated $11 billion in outstanding mortgage debt.

On January 7, 2026, Newsom revealed that Bank of America will offer qualifying borrowers up to two extra years of mortgage forbearance. Other lenders, including Wells Fargo, JPMorgan Chase, U.S. Bancorp, and Citigroup, will provide an additional 90-day forbearance period upon verbal request.

The governor is also expanding the CalAssist Mortgage Relief Program, which has already distributed $5.98 million to 732 households. To further support recovery, Newsom is collaborating with banks, lawmakers, and philanthropic partners to create a new funding source. The California Community Foundation, J.P. Morgan Chase, and Goldman Sachs will contribute to this fund, helping address insurance shortfalls that have delayed rebuilding.

The combined efforts aim to ease financial pressure on wildfire victims and accelerate reconstruction. With mortgage relief extended and new funding in development, affected residents will have more options to recover and rebuild their homes.