Senate Investigations & Government Operations Committee will investigate how to prevent such future delays
State Senator Carl L. Marcellino (R-Syosset), Chairman of the Senate Investigations and Government Operations Committee announced today that the Committee has begun an investigation on what New York State laws need to be updated or added in order to expedite the release of insurance funds from banks and mortgage servicers for Super Storm Sandy homeowners.
“If any of the individuals blocking the release of Sandy insurance funds could witness firsthand the devastation and suffering of homeowners, they would comprehend why this money needs to move now. By putting the bottom line before people, the banks and mortgage companies are crippling the rebuilding process and exacerbating the pain,” said Senator Carl L. Marcellino.
In a February 12, 2013 announcement the Department of Financial Services reported that their investigation uncovered $200 million in insurance funds from Super Storm Sandy that are being held by banks and have not yet been sent to homeowners who need the money to pay for necessary repairs.
“Many families are facing an unexpected reality when they receive their insurance checks, only to find out that they need an additional signature from the bank or mortgage service to get the money released. Often, getting these funds in hand is the difference between a family getting back into their home and regaining a sense of normalcy,” said Senator Marcellino.
In addition, Senator Marcellino and Senator Joseph Griffo, Chairman of the Senate Standing Committee on Banks, sent letters to banks and mortgage servicers asking that they make every effort to release the funds as quickly as possible.
“The next natural disaster is not a question of if, but when. We must do everything in our power to learn from this storm and its’ aftermath. I am calling on these banks and mortgages companies to do the right thing and release these funds immediately. These families can simply not wait another day to start rebuilding and they shouldn’t have to,” concluded Senator Marcellino.