The Eaton Fire in Altadena and the Palisades Fire in Pacific Palisades destroyed 59 square miles, displaced several thousand residents and killed an estimated 440 people. Many still have no homes and are struggling to recover.
During the hearing, lawmakers heard from families facing displacement, insurance delays and the lengthy process of rebuilding homes, which can take several years. CMBA said mortgage lenders and service workers play an important role in delivering immediate relief and long-term support to borrowers following disasters.
“Natural disasters don’t create a single problem – they create a chain reaction across housing, insurance and financial stability,” said Paul Gigliotti, CEO of CMBA. “We showed up on Friday to support our industry and the homeowners we serve, and to reinforce that recovery requires more than temporary relief — it requires cooperation and real execution.”
In interview no HousingWireGigliotti said the state needs to monitor what patience looks like. “Unfortunately, at the hearing of the committee, we heard a lot from the public that not much has been accomplished,” he said.
Evidence from the organization says debt forbearance provides valuable short-term relief but is not a long-term solution. Extending the forbearance without a defined way forward could increase financial hardship for borrowers in the long run, the group said.
“Patience is the bridge – but we have to focus on what’s next,” added Gigliotti. “We are ready to work with Assemblymembers and stakeholders to create disaster solutions that address the full recovery process — not just lending, but insurance, permits, and housing stability. If we get this right, California has an opportunity to lead the nation in how we respond to natural disasters.”
Gigliotti said he would like to see a collaborative effort happen.
“I think AB 238 was the first response to find something to support the victims of the wildfires. I would hope that if any additional legislation is on the table, if it is passed or considered, I would hope that it is a way to work more closely with the industries that are part of this great rebuilding effort,” said Gigliotti.
The organization also pointed to a series of interconnected recovery challenges beyond foreclosure relief — including delays in insurance applications and coverage gaps, permitting and rebuilding times, limited temporary housing and rising rents, and communication gaps between stakeholders.
“Unfortunately, due to some circumstances, most of those who are victims of the wildfire, as we heard on Friday, still do not know what the next steps are,” said Gigliotti. “Districts still haven’t opened up areas for wildfire victims to be able to go to their homes, let alone get plans or an architect to possibly rebuild, and even if it does, district offices are backed up with permits so not many permits have been issued.”
But it’s not just the victims that Gigliotti and the CMA are concerned about.
“Although payments can be paid with forbearance, it is important to remember that the lender pays that, it is not free money.
The CMA called for a more integrated approach to disaster recovery policy involving government officials, insurance companies, housing stakeholders and the real estate industry. “I think that would be an exciting opportunity for the state of California to put its foot forward,” Gigliotti said.
