Mayor Bass Applauds New Legislation To Extend Mortgage Forbearance For L.a. Wildfire Survivors After Leading A Delegation Of Palisadians To Sacramento

The following information was released by the office of the Mayor of Los Angeles:

After leading a delegation of Palisadians including renters and town home, condo, and mobile home owners to Sacramento earlier this week to push for mortgage relief and insurance industry reforms, Mayor Karen Bass today celebrated the introduction of new State legislation by Assemblymember John Harabedian to extend mortgage forbearance for L.A. wildfire survivors.

"Recovery should never feel harder than the disaster itself, but for so many wildfire survivors, ongoing mortgage payments and delays, underpayments, and denials from insurers are making it impossible to rebuild," said Mayor Bass. "I want to thank my friend Assemblymember John Harabedian for listening to survivors and taking action to provide relief they need and deserve to rebuild and return home. I look forward to continuing to work alongside him and all members of the L.A. County Legislative delegation to support Palisades residents every step of the way as the recovery effort continues."

"California is facing more frequent and severe natural disasters, and families should not have to worry about mortgage payments on homes they cannot live in," said Assemblymember John Harabedian (D-Pasadena). "These bills are about more than mortgagesthey are about giving families hope, security, and a chance to rebuild their lives after unimaginable loss. No Californian should have to choose between losing their home and recovering from a disaster. By extending protections and creating a statewide safety net, we are standing with families when they need it most, helping them heal, rebuild, and stay rooted in their communities."

On Wednesday, Assemblymember John Harabedian announced legislation, AB 1847, to extend AB 238: The Mortgage Forbearance Act (2025) by two additional years for Los Angeles wildfire survivors who are struggling to make timely mortgage payments. He also introduced AB 1842: The California Emergency Mortgage Relief Act to establish a clear, consistent framework that allows any homeowner to pause mortgage payments whenever a state of emergency is declared by the Governor or federal government covering disasters such as wildfires, floods, earthquakes, and other catastrophic events.

Mayor Bass' Office has been pushing for a legislative solution to extend mortgage forbearance beyond one year for months. In November, Mayor Bass called on banks and mortgage servicers to voluntarily extend mortgage payment relief for homeowners still recovering from the January wildfires, calling for three additional years of payment relief beyond the one year that is provided under state law.

Additionally, Governor Newsom yesterday announced the expansion of mortgage relief for survivors of qualified disasters, including the 2025 Los Angeles firestorms. The expansion makes available up to a full year of mortgage assistance up to $100,000 that does not need to be repaid. It also allows more families to access this assistance with broader income eligibility.

On Monday, Mayor Bass led a delegation of Palisades residents to Sacramento alongside Councilmember Traci Park, meeting with more than a dozen State legislators and officials to advocate for a number of reforms and protections for wildfire survivors. Photos and b-roll available here.

Holding Insurers Accountable

While hundreds of homes have started construction, one of the biggest hurdles Palisades residents continue to face are delays, underpayments, and denials from the core institution meant to help them recover: the insurance industry.

Ending the "Adjuster Shuffle" Survivors report multiple adjusters cycling through a claim, causing significant delays and often valuing losses at differing amounts.

Combating Loss Undervaluation A Federal Reserve study found California wildfire survivors are underpaid by $200,000-$300,000 on average, with insurers providing low estimates for both remediation and rebuilding a fraction of what contractors quote for the work or insisting red-tagged homes can be repaired.

Mandating Toxic Substance Testing and Remediation Insurers reportedly refuse to cover the cost of testing for toxins, such as lead, in smoke-damaged but structurally intact homes.

Mortgage Relief for Impacted Homeowners

Homeowners have reported that major banks, mortgage lenders, and regional servicers continue to deny forbearance requests, demand lump sum repayments, and report borrowers to credit bureaus, laying bare the need for greater enforcement of AB 238 the Mortgage Forbearance Act and additional reforms to support survivors. Most critically, survivors need extended forbearance beyond existing timelines and state-level protections against lump sum demands.

Continued State Investment

The delegation also advocated for continued State funding to close the gap between insurance proceeds and the cost of rebuilding and to support long-term recovery and resilience.

Mayor Karen Bass,

City of Los Angeles

200 N. Spring St.

Los Angeles, CA 90012

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