Major U.S. banks, alongside mortgage giants Fannie Mae and Freddie Mac, are providing disaster relief and flexible mortgage repayment options to those affected by the wildfires in Southern California that have left thousands of homeowners grappling with destruction and uncertainty.
One of the country’s biggest banks, Chase Home Lending, a subsidiary of JPMorgan Chase, has announced a disaster forbearance program for its mortgage customers affected by the wildfires.
“Our thoughts are with everyone impacted by the devastating wildfires in Southern California, and the heroic first responders working to contain them,” a JPMorgan Chase spokesperson told The Epoch Times in an emailed statement. “Chase Home Lending is supporting mortgage customers affected by the wildfires by offering disaster forbearance.”
This initiative allows affected homeowners to temporarily pause or reduce their loan payments without penalty. It offers an initial 3-month payment pause, extendable up to 12 months. Requests are reviewed within two business days, activating protections such as fee waivers, foreclosure prevention, and no credit impact.
Bank of America has also rolled out a relief program that features tailored mortgage forbearance options to address individual customer needs.
Fannie Mae, a government-sponsored entity that backs millions of home loans nationwide, is also providing relief to borrowers affected by the wildfires. The company announced on Jan. 13 that its disaster relief options include up to 12 months of forbearance, during which homeowners are not required to make monthly payments. During the disaster relief period, borrowers will not incur late fees, and foreclosure and other legal proceedings will be suspended.
“We are committed to supporting homeowners, renters, and communities in need during this challenging time,” Cyndi Danko, senior vice president at Fannie Mae, said in a statement. “If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible.”
Similarly, Freddie Mac announced in a Jan. 13 statement that affected homeowners can contact their mortgage servicers to discuss their eligibility for disaster relief programs.
“Once out of harm’s way, we encourage homeowners in these affected areas to contact their mortgage servicer to learn about relief options,“ Mike Reynolds, Freddie Mac Single-Family Vice President, said in a statement. ”Freddie Mac and our partners stand ready to provide immediate assistance and aid in the recovery of families and individuals.”
Communities across Southern California face widespread property damage and displacement caused by the disaster. Since the fires erupted across a densely populated area extending for 25 miles north of downtown Los Angeles, they have destroyed more than 12,300 structures, including homes, apartment buildings, businesses, outbuildings, and vehicles.
Homeowners Sohrab Nafici (R) and Christine Meinders return to their fire-ravaged neighborhood in the aftermath of the Eaton Fire in Altadena, Calif., on Jan. 10, 2025. (Jae C. Hong/AP Photo)
Flames from the Palisades Fire burn a building at Sunset Boulevard amid a powerful windstorm in the Pacific Palisades neighborhood of Los Angeles on Jan. 8, 2025. (Apu Gomes/Getty Images)
At least 24 people are confirmed to have been killed in the fires as of Jan. 13. Authorities expect the death toll to increase, as cadaver dogs search through flattened neighborhoods and crews assess the extent of the destruction.
“As these searches continue, I unfortunately anticipate that those numbers will increase,” Los Angeles County Sheriff Robert Luna said at a Jan. 12 press conference.
The economic loss and damage from the fires is estimated to range between $250 billion and $275 billion, according to an AccuWeather update on Jan. 14. The initial damage estimate includes insured and uninsured losses, covering property damage, wage disruptions, infrastructure destruction, supply chain effects, and other related effects.
Forecasters have warned that strong winds are likely to return to the Los Angeles area, with the potential to fan smoldering fires. Officials have urged residents to stay out of the affected areas, as dangerous conditions remain.
Jacob Burg contributed to this report.
