California Gov. Gavin Newsom (D) threw his support Monday behind legislation aimed at guaranteeing that wildfire-impacted homeowners, rather than their lenders, would receive interest earned from insurance payouts.
The bill, authored by state Assemblymember John Harabedian (D), intends to fix what the governor’s office described as “an inequity in current law,” which has enabled lenders to collect such interest payments held in escrow following a disaster.
“Homeowners rebuilding after a disaster need all the support they can get, including the interest earned on their insurance funds,” Newsom said in a statement …