Mayor Bass Calls on Banks to Provide Extended Mortgage Relief to Homeowners Impacted by January 2025 Wildfires

Mayor Karen Bass urged banks to provide additional mortgage payment relief for homeowners impacted by the January 2025 wildfires in Los Angeles. She proposed extending relief by three years beyond the one-year period established by California's Assembly Bill 238, which allows homeowners to pause mortgage payments without penalties. Mayor Bass highlighted that families still in temporary housing require more time to rebuild their lives and finances. "AB 238 is an important start, but one year simply isn’t enough," she stated. The mayor's proposal aims to ensure homeowners are not charged additional fees during the relief period, which would also not affect their credit scores.

Many residents are currently navigating financial challenges while managing repairs and insurance claims. Bass has already begun discussions with banking partners to advocate for this critical support. Historical precedents show that extended relief has been effective in similar situations, reinforcing her belief that the banking sector will respond compassionately to community needs.