According to the New York Democrat governor, Andrew Cuomo, four largest banks, JP Morgan Chase, Citibank, Bank of America and Wellsfargo are jointly and deliberately withholding nearly $200m insurance checks in favor of homeowners who are victims of Hurricane Sandy.
Investigation by the state's Department of Financial Services revealed that the banks citing verification of damages and repairs done as reason for their action, while the governor feels the victims have waited for too long for their legitimate compensation.
As it is, homeowners need the bank's endorsement before they can get the money, even though checks are issued to both mortgage providers and borrowers.
In Cuomo's view, "After insurance companies have sent homeowners checks to pay for repairs, the money should not be sitting with the bank because of red tape." He added, "Banks need to use maximum discretion to get money into homeowners' hands as quickly as possible."
More than 90 percent mortgage servicers in New York are reportedly holding a total sum of $208m meant for 6,611 eligible homeowners.
In the meantime, while banks insist on verifying repairs before checks are sent to homeowners most affected by Hurricane Sandy, they in turn complain bitterly about the slow disbursement of fund to effect repairs in good time.
Enjoy this article? Receive e-mail alerts when new articles are available. Just click "Subscribe" button above.
Comments