California Orders Some 800 Mortgage Firms to Report Within Two Weeks on Held-Up Los Angeles Wildfire Insurance Payouts
California's Business and Consumer Services Agency and the Department of Financial Protection and Innovation ordered on Oct. 15 that some 800 licensed mortgage lenders and servicers report within two weeks, by Oct. 29, on their handling of Los Angeles wildfire insurance payouts: how much payout money they had received as of Sept. 30, whether all of it was released, how long releases took, how many payments had been held for more than 10 days, and the reasons for any delay or withholding.
The two agencies said they have received more than 160 complaints from fire survivors since January 2025 alleging that lenders kept insurance money from homeowners long after insurers had paid out. Rohit Chopra, secretary of the Business and Consumer Services Agency, said it was unacceptable that survivors who had completed the cumbersome claims process still could not get funds to rebuild; KC Mohseni, commissioner of the Department of Financial Protection and Innovation, warned that the department would not hesitate to take strong action against firms that delay without cause.
Gov. Gavin Newsom wrote to banking associations in July asking lenders to release funds within 10 business days. The Eaton and Palisades fires destroyed more than 16,000 homes and other structures, and rebuilding has been slow.
Source: Associated Press, Insurance Business (Oct. 15-16)
Published by GSM · USA (original Chinese edition)
Photo: 图：伊顿大火过后，阿塔迪纳一处被烧毁的住宅前立着“不出售”的牌子（资料图）。图片来源：Facsenator 摄，Wikimedia Commons，CC0。Photo: A 'Not for Sale' sign stands in front of a burned-out home in Altadena after the Eaton Fire (file photo). Photo by Facsenator, via Wikimedia Commons, CC0.
