Rebuilding after a wildfire is not a single financial decision—it’s a long sequence of them. Insurance payouts arrive unevenly. Construction timelines stretch. Costs escalate. And for many homeowners and businesses in Pacific Palisades, traditional banking assumptions simply don’t match post-fire reality.
On January 21, the Palisades Recovery Coalition (PRC) convened a community-wide Banking & Recovery Resources Zoom to help fire survivors better understand what tools are available—and where gaps remain. Representatives from Bank of America, Wells Fargo, JPMorgan Chase, and Flagstar Private Bank joined the discussion, answering questions directly from residents navigating the financial side of recovery.
The conversation surfaced both meaningful progress and persistent challenges that continue to complicate rebuilding in the Palisades.
Forbearance: Relief Now, Questions Later
One of the most urgent topics raised by residents was what happens after forbearance ends. Many households are still far from breaking ground, yet face uncertainty about how deferred mortgage payments will be handled.
Bank representatives discussed protections under California AB 238, which prevents loan servicers from requiring lump-sum repayment at the end of forbearance for borrowers who were current on their mortgages prior to the disaster. Instead, deferred payments are typically added to the end of the loan term or restructured—an important safeguard for households facing long rebuild timelines.
Still, the discussion made clear that borrowers must engage early and often with their servicers to ensure these protections are applied correctly to their individual situations.
Insurance Proceeds and the Mortgage Servicing Bottleneck
Several homeowners voiced frustration with mortgage servicers holding insurance proceeds during reconstruction—even in cases where mortgage balances are far below land value. This practice can severely restrict access to capital needed to continue building, slowing recovery at precisely the moment momentum is needed most.
Bank representatives acknowledged the complexity of balancing lender risk with borrower needs and encouraged residents to work directly with designated disaster-recovery contacts to review and escalate individual cases. While no single solution fits every scenario, the message was consistent: personalized review matters, and escalation pathways do exist.
Construction Lending: Adapting to New Rebuild Realities
Bank of America, represented by Chris Wong, outlined a suite of disaster-recovery supports designed to accommodate the non-linear nature of rebuilding. These include extended forbearance options, flexible repayment structures that avoid lump-sum obligations, and construction lending solutions.
Importantly for Palisadians, Bank of America confirmed that it does lend for prefab and modular construction—a rebuilding pathway many homeowners are exploring to reduce costs and shorten timelines. Community members expressed appreciation for both the breadth of options and the bank’s responsiveness to disaster-impacted borrowers.
Wells Fargo, represented by Martin Sanchez, focused on mortgage servicing and insurance coordination. Wells Fargo acknowledged the frustration homeowners experience when funds are held during construction and emphasized the importance of working directly with recovery specialists to ensure proceeds are released in a manner that supports rebuilding progress.
Chase, represented by Gentry Ficke, underscored the importance of early, direct engagement. Chase emphasized that reaching out to disaster-recovery teams sooner rather than later allows the bank to evaluate individual circumstances and identify appropriate relief options while minimizing additional financial strain.
Private Banking Perspectives and Customized Solutions
Flagstar Private Bank, based in Beverly Hills and a member of the Malibu–Pacific Palisades Chamber of Commerce, brought a private-banking perspective to the discussion. Representative Alison Schweitzer shared that Flagstar offers construction loan options and specializes in working closely with homeowners to evaluate their full financial picture.
Flagstar emphasized its role in helping clients weigh competing priorities—liquidity, timing, risk, and long-term financial health—to develop a thoughtful, customized financing plan for recovery and rebuilding. For some Palisadians, this kind of individualized approach may help bridge gaps left by more standardized lending products.
Persistent Gaps the Community Is Still Facing
Despite the range of tools discussed, several unresolved issues emerged clearly:
Construction and bridge-financing gaps remain for homeowners rebuilding without an existing mortgage, limiting options for those who own property free and clear.
Reverse mortgages continue to raise complex questions. Industry data shared during the meeting indicated that approximately 250 reverse mortgages were impacted by the Palisades and Eaton fires, with roughly 100 claims completed by September. Resources from the CFPB and industry organizations were shared to help affected homeowners navigate disaster-related protections.
These gaps underscore the need for continued advocacy, innovation, and expanded participation from both public and private sectors.
Moving Forward
PRC convened this session to do more than share information—it was designed to surface real-world barriers, clarify financial pathways, and create direct lines of communication between Palisadians and decision-makers.
As recovery continues, PRC will keep bringing banks, insurers, agencies, and residents into the same room—virtually and in person—to ensure that rebuilding in Pacific Palisades is not stalled by confusion, silence, or avoidable financial friction.
PRC will continue convening these conversations as part of our broader effort to make recovery more navigable, more transparent, and more achievable for Palisadians at every stage of rebuilding.