Proposes Three Additional Years of Payment Relief Beyond State Legislation
LOS ANGELES – Mayor Karen Bass today urged banks and mortgage servicers to voluntarily extend mortgage payment relief for homeowners still recovering from the January 2025 Los Angeles wildfires, calling for three additional years of payment relief beyond the one year that is provided under state law. While many residents currently benefit from short-term mortgage relief as they rebuild, that relief is set to expire for most families. Mayor Bass is proposing that banks and mortgage servicers voluntarily provide three additional years of payment relief. Under her plan, homeowners would receive a total of four years of payment relief.
“Under my proposal, the years of relief are added to the back of a homeowner’s current mortgage,” said Mayor Bass. What’s important is during that time homeowners aren’t charged any additional fees, or penalties and this relief does not negatively impact their credit. With rebuilding underway across the Palisades and Los Angeles County, many impacted residents remain in temporary housing and face mounting financial strain. These families are already carrying more than anyone should have to. They're piecing life together while having to negotiate with contractors and wait for insurance claims to come through. Asking them to shoulder mortgage payments on top of all that would force them into an impossible — and unacceptable — choice.”
California recently passed Assembly Bill 238, dubbed the Mortgage Forbearance Act, allowing homeowners whose properties were destroyed or rendered uninhabitable by the fires to pause mortgage payments without late fees, penalties or risk of foreclosure for up to one year.
While Mayor Bass acknowledged this as a critical first step, she emphasized that additional support is essential for sustainable recovery. "AB 238 is an important start, but one year simply isn’t enough. Families need more time to truly rebuild," the Mayor stated. "We are urging our banking partners to join us in delivering meaningful relief at this critical moment.”
Mayor Bass has already engaged in preliminary discussions with the banking industry and will continue working to secure critical relief: "I am encouraged that our partners in banking and business will recognize that this is the fair and compassionate solution our community needs," said Mayor Bass. "We've seen extended relief work in the past — and we know it can work here.”