New York Gov. Andrew Cuomo announced last month that major banks and mortgage servicers have been instructed to take action to expedite insurance payments to New York homeowners in the wake of Sandy.
Currently, insurance claim checks must be endorsed by the banks or mortgage servicers before homeowners can cash them, causing “frustrating delays” at a time when the money is needed for home repairs or living expenses, said Gov. Cuomo.
“Any delay in making these types of critical home repairs can mean the difference between a family being able to live safely in their home or remaining needlessly displaced for weeks or even months,” he said.
The New York Department of Financial Services said it has received numerous complaints from homeowners that servicers and banks have been imposing unusually stringent requirements before they will sign the advance checks. This has been causing problems for many families who need their insurance money both to live and to start making repairs, regulators said.
Under Gov. Cuomo’s instruction, banks and servicers will now use as much discretion as they have under the rules to immediately move home repair funds to homeowners and their contractors. Gov. Cuomo said these new actions will enable the insurers to get the money to homeowners faster.
Topics New York Homeowners
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