California has ordered mortgage lenders, including banks and credit unions, to report how they handled insurance payouts for survivors of the 2025 Los Angeles-area fires. Lenders have two weeks to respond.
The state's Business and Consumer Services Agency and Department of Financial Protection and Innovation want to speed up payments held by lenders before homeowners receive them. The department has received more than 160 complaints about delays and other payment issues since January 2025.
In July, Gov. Gavin Newsom said people rebuilding after the fires had reported waiting weeks for lenders to release insurance money. He directed officials to collect data on lenders that take more than 10 days to distribute payouts and have no plan to accelerate them.
More than 16,000 homes and other buildings were lost in the Palisades and Eaton fires across the Los Angeles area. Few homes have been rebuilt.
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