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L.A. wildfire victims would get mortgage relief under new bill

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L.A. wildfire victims would get mortgage relief under new bill

Victims of last year’s wildfires in Los Angeles County who were unable to get mortgage relief under a state law enacted last year would get another chance with a stronger bill introduced Wednesday.

The legislation, AB 1847, by Assemblymember John Harabedian (D-Pasadena), would triple to 36 months the 12 months of mortgage relief offered by last year’s AB 238, while allowing borrowers to repay the money through a deferral that extends the mortgage.

Also authored by Harabedian, AB 238 prohibited mortgage lenders and servicers from requiring borrowers to pay back any forbearance in a lump sum, but it otherwise did not specify repayment terms. It also banned late fees, foreclosures and negative reports to credit bureaus.

Borrowers told The Times that they had difficulty getting any relief and when they did, they were told if they didn’t want to pay it back in a lump sum, they would have to agree to a loan modification that could raise their interest rate.

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Like AB 238, the relief can only be obtained if allowed by the underlying mortgage contract.

However, Harabedian said that most of the contracts and guidelines of Fannie Mae and Freddie Mac — the government-sponsored organizations that hold or guarantee the majority of U.S. mortgages — do not bar loan deferrals.

“I think some people were being offered forbearance that, frankly, didn’t comply with 238 when it should have,” he said. “They weren’t given any sort of election or flexibility on how they would repay so we’re trying to perfect it now.”

Harabedian said most of the problems borrowers are facing appear to be due to companies that service mortgages on behalf of lenders, while large institutions such as Bank of America have been more generous.

The Charlotte, N.C., financial institution in December started offering 36 months of mortgage relief to its borrowers without a change to the interest rate.

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Another key AB 238 amendment is the extension of relief from 12 to 36 months, which borrowers seek in 90-day increments. The deadline for applying for relief would be extended to Jan. 7, 2029.

Harabedian said 36-months of relief are necessary as it will take many homeowners years to fix and rebuild their homes after the fires in Altadena, Pacific Palisades and nearby communities, which killed at least 31 people and damaged or destroyed more than 18,000 homes.

“This extension tries to align with the full rebuild process that survivors are going to endure, and make sure that from the start of it till the end of it, they’re not under financial distress that would cause them to abandon their communities,” he said.

Len Kendall, who lost his home in Pacific Palisades, said that while he welcomed the legislation, he is still uncertain how it might affect him, including his terms of repayment.

“There’s going to have to be follow up to make sure these these servicers and lenders actually abide by the laws, because there’s no one really holding them accountable at the moment,” he said.

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Last month, Gov. Gavin Newsom said in a press release that the Department of Financial Protection and Innovation has received 233 mortgage forbearance complaints, with 92% resolved in the consumer’s favor.

However, Kendall said that the agency closed his complaint even though his mortgage servicer had requested a lump sum and his repayment plan remains up in the air.

The agency told him in a letter reviewed by The Times that it “cannot intervene on behalf of individual consumers in any particular case” and that it “brings consumer protection actions when we find patterns of deception, misrepresentation or unfair business practices of statewide interest.”

A spokesperson for the agency said it worked with Kendall to ensure he received “appropriate” forbearance relief and considers the matter resolved.

He added the department is monitoring compliance with AB 238 but so far has not announced any enforcement actions against lenders or servicers.

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Harabedian introduced a second bill Wednesday that would provide for mortgage forbearance statewide for homeowners whose residences are uninhabitable after a state of emergency declared by the governor or federal government.

The California Emergency Mortgage Relief Act, AB 1842, requires mortgage servicers to file a monthly report with the DFPI about the number of forbearance requests they receive during a declared emergency and how many were approved and denied, including the reason for denial.

The bill also allows a borrower to bring a civil action against a mortgage servicer for violations of the law.

The AB 238 amendments, if signed into law, would take effect immediately.

Harabedian’s office worked with the California Bankers Assn. and the California Mortgage Bankers Assn. in developing AB 238. The lawmaker said he not sure if they will support the extension of mortgage relief.

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“We look forward to reviewing it with our members and working constructively with stakeholders as we have consistently done. The banking industry proactively provided relief to wildfire victims, and this effort pre-dated legislative action,” said Yvette Ernst, spokesperson for the California Bankers Assn.

The California Mortgage Bankers Assn. said it also was reviewing the legislation.

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Many indie festival films struggle to get distribution. Alamo Drafthouse is trying to change that

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Many indie festival films struggle to get distribution. Alamo Drafthouse is trying to change that

Dine-in movie theater chain Alamo Drafthouse Cinema is launching a new initiative to show unreleased independent films that had successful festival runs, a move that comes as specialty films have struggled to gain distribution.

The Alamo Exclusives program, announced Wednesday, will give limited theatrical runs to films that showed at festivals including Sundance, the Toronto International Film Festival, Tribeca Festival and South by Southwest festival, as well as Alamo’s own Fantastic Fest.

The idea is to help showcase films that received critical acclaim, but did not secure distribution or acquisition deals. The chain will not acquire these films, but instead will enter into agreements with filmmakers to exhibit their films on Alamo Drafthouse screens. By showing these films to audiences on the big screen, these films could get the momentum they need for further opportunities.

The program’s first film will be the documentary “Butthole Surfers: The Hole Truth and Nothing Butt,” which debuted last year at South by Southwest and chronicles the history of the punk rock band.

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The film will be shown in Alamo Drafthouse theaters for a limited time later this summer.

The Austin-based chain, which is owned by Sony Pictures, has a long history of curating indie films for its audiences, giving Alamo Drafthouse confidence that its viewers want to see these kinds of movies, company chief executive Michael Kustermann said in a statement.

“Time and again, they’ve shown they’ll come out to support bold, original films when given the opportunity,” he said. The new Alamo Exclusives “gives us another way to champion filmmaker-driven films that deserve to be discovered and connect them with the wider Alamo Drafthouse audience.”

The initiative comes at a difficult time for indie films. Since the pandemic upended the movie business, traditional studios and distributors have had less appetite for risk, including betting on smaller indie films out of festivals.

And as the 2023 dual writers’ and actors’ strikes thinned out theatrical lineups, that aversion to uncertainty became a push for reliable and profitable hits.

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“Too many incredible films premiere at festivals and then never receive the theatrical life they deserve,” Lisa Dreyer, director of Fantastic Fest and film innovation at Alamo, said in a statement. “We are actively searching for films across all genres, from horror to comedy, to everything in-between, to champion in this new, exciting way.”

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FDA escalates recall of Utz brand potato chips before July Fourth holiday

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FDA escalates recall of Utz brand potato chips before July Fourth holiday

The recall of a popular chip brand over salmonella concerns was recently upgraded to the U.S. Food and Drug Administration’s highest level, just ahead of the Fourth of July holiday and countless backyard barbecues.

On June 24, the FDA designated the recall of several varieties of Zapp’s and Dirty brand potato chips as Class I, meaning it’s “a situation in which there is a reasonable probability that the use of or exposure to a violative product will cause serious adverse health consequences or death.”

FDA has classified the following items as Class I:

Zapp’s

  • 1.5-ounce Zapp’s Bayou Blackened Ranch Kettle Chips
  • 2.5- and 8-ounce Zapp’s Bayou Blackened Ranch Potato Chips
  • 1.5- and 8-ounce Zapp’s Big Cheezy Potato Chips

Dirty

  • 1.5- and 2-ounce Dirty Brand Salt and Vinegar Potato Chips
  • 2-ounce Dirty Maui Onion Chips
  • 2-ounce Dirty Sour Cream and Onion Potato Chips

The chips are produced by Utz Quality Foods, LLC, which on April 28 issued a recall after learning “that a seasoning containing dry milk powder, sourced from California Dairies, Inc. and supplied by a third-party supplier, may contain the presence of Salmonella.”

Salmonella can lead to sometimes deadly infections in elderly people, young children and those with weakened immune systems, according to the FDA.

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More than 680,000 bags are included in the recall.

Anyone who has these products should not eat them and should discard them immediately.

What to look for

Salmonella is a foodborne illness that can be fatal to young children, pregnant women, older adults and people with weakened immune systems, according to the National Institutes of Health.

Symptoms may develop 12 to 72 hours after infection, according to the FDA.

The FDA said that people with strong immune systems infected with salmonella may experience fever, diarrhea (which may be bloody), nausea, vomiting and abdominal pain. The illness can last four to seven days.

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In rare cases, the infection may produce more severe illnesses such as arterial infections, endocarditis and arthritis, the agency added.

What to do if infected

If you contract salmonella, the Centers for Disease Control and Prevention recommends drinking plenty of fluids to prevent dehydration.

The CDC advises consulting a doctor before taking antidiarrheal medicine or antibiotics. If severe symptoms continue after two days, seek medical help, the agency says.

Because those with diarrhea can spread salmonella to others, it’s also recommended to avoid sharing food or preparing meals for others, sexual contact and swimming in public pools, and to stay home while sick.

Times staff writer Jasmine Mendez contributed to this report.

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‘Minions & Monsters’ tops the box office, but with a lower-than-expected haul

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‘Minions & Monsters’ tops the box office, but with a lower-than-expected haul

The Minions took over theaters this weekend as Universal Pictures and Illumination’s “Minions & Monsters” won the top spot at the box office, though with a lower-than-expected domestic haul.

The animated movie, which follows the Minions’ takeover of Hollywood, took in $61.4 million in the U.S. and Canada for the five-day Fourth of July holiday weekend, according to studio estimates. That haul was lower than analysts’ expectations for a domestic opening of about $68 million. The movie’s three-day total was $36.4 million.

But the Minions performed well internationally, bringing in about $85 million. In total, “Minions & Monsters” made $159.9 million worldwide on a production budget of about $85 million.

The film is the latest in the powerhouse franchise that began with “Despicable Me” in 2010. Across its previous six installments, the “Despicable Me” and “Minions” franchise has made more than $5.6 billion at the global box office. The last movie, 2022’s “Minions: The Rise of Gru,” made more than $940 million worldwide.

“Minions & Monsters” marks the lowest opening for the franchise. Part of the issue could be timing — the box office can be negatively affected when the Fourth of July lands on a Saturday, said Paul Dergarabedian, head of marketplace trends at Rentrak.

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Walt Disney Co. and Pixar’s “Toy Story 5” came in second at the box office this weekend with a domestic three-day gross of $31 million. Angel Studios’ biopic “Young Washington” ($20.8 million), Warner Bros. and DC Studios’ “Supergirl” ($9.6 million) and Universal’s “Disclosure Day” ($6 million) rounded out the top five, according to Rentrak.

The haul for “Minions & Monsters,” coupled with the strong holdover performance of “Toy Story 5,” proved again that family films are making a dent in the summer box office.

“Toy Story 5” has now brought in a total of $764.3 million worldwide, and last month, Universal, Illumination and Nintendo’s “The Super Mario Galaxy Movie” crossed $1 billion at the global box office, becoming the first film of any kind to do so this year.

The rest of the summer theatrical lineup is also expected to bring in audiences and push domestic box office totals closer to pre-pandemic figures. Next week, Disney will release its live-action “Moana,” followed by Christopher Nolan’s “The Odyssey” and Sony Pictures’ “Spider-Man: Brand New Day.”

To date, the summer box office is now about $2.3 billion, a nearly 12% increase compared with the same period a year ago, according to Rentrak data. Compared with pre-pandemic 2019’s numbers, however, it is still down about 7%.

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