CA Mortgage Relief Program to Help Roughly 30,000 Homeowners

California’s plan to provide $1 billion in mortgage relief grants to homeowners who have fallen behind on housing payments or reverse mortgage arrearages during the pandemic was approved by the U.S. Department of the Treasury. This clears the way for a full program launch in the coming weeks. The California Mortgage Relief Program will help an estimated 20,000 to 40,000 struggling homeowners, with funds reserved for homeowners in socially disadvantaged and underserved communities often hit hardest by the pandemic.

“We are committed to supporting those hit hardest by the pandemic, and that includes homeowners who have fallen behind on their housing payments,” said Gov. Gavin Newsom. “No one should have to live in fear of losing the roof over their head, so we’re stepping up to support struggling homeowners to get them the resources they need to cover past due mortgage payments. Our Housing is Key program has already provided renters and landlords with the assistance and resources they need to stay afloat. Now, with our California Mortgage Relief Program, we are extending that relief to homeowners.” 

Through the mortgage relief program, past due housing payments will be covered in full – up to a maximum of $80,000 per household – with a direct payment to qualified homeowners’ mortgage servicers. The financial support is provided as a one-time grant that qualified homeowners will not have to repay, so those owners can get caught up and have a fresh start. Funding for the program is allocated through the American Rescue Plan Act’s Homeowner Assistance Fund.