Chase, Wells Fargo among banks offering 90-day grace period on mortgages to LA wildfire victims

LOS ANGELES (KABC) -- Several big banks have agreed to offer up to a 90-day grace period on mortgage payments for those who lost their homes in the Los Angeles area wildfires.

According to Gov. Gavin Newsom's office, Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo are offering a 90-day forbearance of their mortgage payments, without reporting the payments to credit reporting agencies.

"After so much trauma, we hope this deal will provide thousands of survivors a measure of relief," said Newsom in a statement. "These financial protections will enable residents to concentrate on taking care of their immediate needs rather than worrying about paying their mortgage bills. I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm."

Newsom said his team is also working with the California Bankers Association, the California Credit Union League, and the California Mortgage Bankers Association, which he said have expressed their support for these relief efforts.

Newsom also said the Department of Financial Protection and Innovation is surveying state-chartered financial institutions to confirm additional commitments.

How will the 90-day grace period work?

As of Saturday, the banks will offer:

• 90-day mortgage payment forbearance periods, streamlined processes for requesting initial relief without submitting forms or documents, payment options that don't require immediate repayment of unpaid amounts (i.e., no balloon payments) at the end of the forbearance period, and the opportunity for more relief

• Relief from mortgage-related late fees accruing during the forbearance period for 90 days

• Protection from new foreclosures or evictions for at least 60 days

• Late payments of forborne amounts will not be reported to credit agencies

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