California Orders Lenders to Report on Handling of Fire Payouts

California officials on Oct. 15, 2026 ordered mortgage lenders, banks and credit unions to report within two weeks on insurance payouts to 2025 Los Angeles-area fire survivors. Regulators aim to speed release of held proceeds after more than 160 DFPI complaints since January 2025. The Palisades and Eaton fires destroyed more than 16,000 homes and other structures; few have been rebuilt. Rohit Chopra said it is "unacceptable that after running through a gauntlet of paperwork to file insurance claims, some wildfire survivors still have not gotten access to the funds they need to rebuild." Gov. Gavin Newsom wrote lenders' associations in July about weeks-long holds, ordered data on payouts taking over 10 days without a speed-up plan, and last year signed a law requiring interest on held payments; he said survivors do not need red tape, delays, and barriers to relief. DFPI Commissioner Kay C. Mohseni said the department may fine lenders that unnecessarily delay payouts. Joy Chen said batch releases and contractor disagreements have caused delays and that lenders collect interest that belongs to survivors while they wait. Rated coverage does not dispute the core facts; the two-week reports and any enforcement remain ahead.