Californians report unraveling mortgage relief after the fires
By: Sarah Wolak | Published: 2025-07-21 21:01:00 | Source: www.housingwire.com
California’s state-run mortgage relief program, announced in January by Gov. Gavin Newsom, had more than 400 financial institutions voluntarily sign up, agreeing they would not charge late fees, would not report late payments to credit agencies and would not demand “balloon payments,” which require borrowers to pay back their entire balance right at the end of the forbearance period.
LA’s NPR affiliate, LAist, shared that it heard from LA homeowners that their banks are not following the rules. California regulators and legal aid attorneys confirmed to the outlet that homeowners are facing demands for repayment.
Lisa Mason, who lost her home in Altadena, told LAist that her mortgage company, Select Portfolio Servicing (SPS), paused her payments without her consent and…
