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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 44 February 2025 J O U R N A L Servicing 450,000+ HOMES AT-RISK FROM LOS ANGELES WILDFIRES W ith the Southern California region facing dangerous winds and extreme fire weather, Gov. Gavin Newsom visited the Pacific Palisades region on January 8 and proclaimed a state of emergency to further support the communities im- pacted by fires in the Los Angeles Area. Authorities have ordered the evacuation of roughly 30,000 residents in the Los Angeles area. Los Angeles County Fire Chief Anthony Marrone in a news conference said that as of January 8, the Palisades Fires have taken the lives of at least two individuals and destroyed at least 1,000 structures. On Tuesday, January 7, the Palisades Fire ignited in Los Angeles County, between Santa Monica & Malibu, and has destroyed thousands of acres of land as of Wednesday, January 8, fueled by high winds with gusts of 50 to 80 miles per hour anticipated, low humidity, and dry conditions that have increased the intensity and spread of the fire. In addition to the Palisades Fire, oth- er notable wildfires in the region include the Eaton Fire in Altadena, California which has burned 2,227 acres, and the Hurst Fire in Sylmar, California, which has burned 505 acres as of Wednesday, January 8—both fires resulting in the evacuation of many neighborhoods. "The Santa Ana winds that are cur- rently driving these fires occur periodi- cally, but the most recent winds are ex- ceptionally strong," said Dr. Tom Jeffery, Senior Hazard Scientist at CoreLogic. CoreLogic estimates that there are more than 456,000 homes with nearly $300 billion in reconstruction cost value at moderate or greater risk within the Los Angeles and Riverside metropolitan areas that are threatened by the fires. CoreLogic notes that this data represents the total number of homes and reconstruction cost value (RCV) within the metropolitan areas at risk in general and is not specific to the current fire events. Data specific to the current fire events may be pro- vided once there are well-defined fire perimeters. CoreLogic concluded that with 185,763 residents, Los Angeles topped the list of most at-risk for wildfires. Following in second place was Riverside, California, located in the southern por- tion of the Golden State, where 166,372 residences were found to be most at risk of wildfires. Rounding out the top 15 with the highest RCV, along with the number of residences in harm's way, were: • San Diego (123,060 residences) • Sacramento, CA (91,775 residences) • San Francisco (56,985 residences) • Oxnard, CA (39,918 residences) • Austin (64,768 residences) • Denver (57,731 residences) • Truckee, CA (43,674 residences) • Colorado Springs, CO (39,854 residences) • Santa Rosa, CA (23,920 residences) • Salinas, CA (18,380 residences) • Redding, CA (28,271 residences) • Bend, OR (24,755 residences) • Edwards, CO (13,506 residences) According to Dr. Jeffery, drought- like conditions have fueled the fires in the Los Angeles area, as the area of the Palisades Fire has been classified as ab- normally dry since early December, and the area just transitioned to a moderate drought within the last 10 days. "The area has been drying since the seasonal precipitation that occurred in late 2024," Dr. Jeffery said. "The Santa Ana winds that are currently driving these fires occur periodically, but the most recent winds are exceptionally strong, with reported speeds of 50 to 60 miles per hour and greater. This not only drives the fires and embers but also inhibits flying the tanker aircraft and he- licopters used to suppress the fires. There have been several small fires in this gen- eral area in the past: the 2019 Palisades Fire and the 2017 Topanga Fire. The 2021 Palisades Fire burned 1,203 acres but was located in an undeveloped area north of the Palisades community." Last May, CoreLogic examined the growing risk of wildfires on U.S. proper- ties and the damage inflicted on homes. In the report, used as an example is the year 2023, where an El Niño weather