JPMorgan, Citi extend mortgage relief for LA wildfire victims

Core Viewpoint - Major banks have agreed to extend mortgage relief for Los Angeles wildfire victims, facilitating the rebuilding process one year after the devastating fires [1] Group 1: Bank Actions - Wells Fargo, JPMorgan Chase, U.S. Bancorp, and Citigroup will streamline requests for an additional 90-day forbearance period, allowing verbal applications without paperwork [2] - Bank of America announced it will offer qualifying borrowers up to two additional years of forbearance [2] - Most lenders limit forbearance to 12 months under California law, which expanded an emergency agreement with banks in January 2025 [3] Group 2: Financial Impact - The Intercontinental Exchange estimated $11 billion in outstanding mortgage debt in the path of the fires [3] - The state has paid $5.98 million to 732 households through the CalAssist Mortgage Relief Program, which covers up to three months of mortgage payments [4] Group 3: Government Initiatives - Governor Newsom announced plans to work with banks, philanthropic partners, and lawmakers on a new financing fund to complement private construction loans and address insurance shortfalls [4] - Eligibility for the CalAssist Mortgage Relief Program is being expanded to assist more fire survivors [4] Group 4: Political Context - Governor Newsom has faced criticism regarding his handling of the wildfires and has called out the White House for not sending California's disaster aid request to Congress [4]