Los Angeles Times
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Source: Los Angeles Times
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More than a year after the Eaton and Palisades fires, fire survivors in California face delays and denials of insurance payouts by mortgage lenders holding funds in escrow, hindering rebuilding efforts. State officials, including Governor Gavin Newsom, are pressuring financial firms to provide prompt and fair access, amid concerns that lenders are adding unnecessary bureaucracy and earning interest on withheld funds. Many homeowners report vague requirements, inconsistent disbursement timelines, and little consequence for lenders blocking funds, complicating recovery efforts after the 2025 wildfires.
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