The California Mortgage Bankers announced its strong support for Governor Newsom’s $100 million allocation for the Southern California Rebuild Fund included in the “May Revise” budget proposal.
The proposed funding would help expand access to construction financing for homeowners impacted by the devastating Southern California wildfires by providing lending support designed to bridge the gap between insurance payouts and the actual cost to rebuild.
“California MBA strongly supports the Governor’s proposed investment in the Southern California Rebuild Fund because wildfire survivors need more than temporary relief. They need realistic pathways to rebuild their homes and communities,” said Paul Gigliotti, CEO of the California Mortgage Bankers Association. “Many homeowners are facing a major financing gap between insurance coverage and actual reconstruction costs. This proposal recognizes that challenge and creates meaningful tools to help families access financing, move forward with rebuilding, and return to their communities.”
California MBA has been actively engaged with the Governor’s Administration, legislators, state agencies, and industry partners since late last year to help develop practical recovery solutions for wildfire survivors. The association has advocated for policies that support consumers, while aligning with federal servicing standards, investor requirements, and the practical realities of mortgage lending.
Under the proposal, the Rebuild Fund would be administered through programs intended to leverage private capital and improve access to reconstruction lending for disaster-impacted homeowners. Proposed tools include:
- A loan loss guarantee program
- Interest rate buydown assistance for reconstruction loans
- Potential subordinate financing and other mortgage assistance tools
California MBA and participating industry partners have also supported development of a new consumer-facing online portal powered by Prudent AI. The portal will help connect homeowners with participating lenders and available recovery resources by collecting borrower information and comparing it against lender matrices from participating construction lending partners, including CMG Financial, and Guild Mortgage, to match consumers with the lender best suited to provide a construction loan based on their profile and rebuilding needs, with insights informed by data provided by Cotality.
“We are proud that California MBA has been engaged as a constructive and solutions-oriented partner throughout this process,” Gigliotti said. “We are committed to helping develop real-world solutions that support homeowners, enhance communities, and strengthen responsible lending practices.”
The Governor’s revised budget proposal now moves to the Legislature for consideration as part of the state budget negotiation process ahead of the June 15 constitutional budget deadline.
About California Mortgage Bankers Association
The California Mortgage Bankers Association (California MBA) is a leading advocate for the real estate finance industry, representing mortgage lenders, servicers, and industry partners operating in California and across the country. The association works to advance responsible lending, promote innovation, and ensure policymakers understand how legislation and regulation impact the mortgage industry and the consumers it serves. For more information, visit cmba.com.
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