More specifically, according to Reuters, Chase Home Lending is giving a "breath of relief" to mortgage customers affected by the fires, said its parent company JPMorgan, while BofA also stated that its program includes the option of mortgage loan forbearance tailored to customers' needs. Forbearance allows borrowers to temporarily pause their loan payments or pay reduced amounts.
The Bank of Montreal told Reuters that it also provided forbearance to customers affected by the fires.
JPMorgan's program will initially last for three months and may be extended in three-month increments up to 12 months. However, there are options to extend the period beyond this limit depending on the investor or insurer.
Borrowers often turn to banks for help with reducing the cost of rebuilding. However, pressure on the profitability of the industry from unpaid loans may also push financial groups to withdraw from markets prone to natural disasters.
“The Los Angeles fires highlight the urgent need for financial institutions to prioritize the management of climate risk,” said Laurent Birade, head of the banking sector at Moody’s.
“Banks with significant exposure to affected sectors in their loan portfolios must understand, identify, measure, and manage their exposure to climate risk through scenario analysis to ensure more resilient and sustainable financial operations.”
Separately, Wells Fargo pledged $1.3 million from its foundation to support both immediate and long-term wildfire relief efforts, a bank spokesperson said, according to the agency.
