Click here to send MH news, tips, links, documents, facts
or factory-built housing related news story suggestions.

Home > Advocacy, Business, Finance, home buyers, News Item, regulation > FHA to Lenders: Pay Hurricane Isaac Claims Now!

FHA to Lenders: Pay Hurricane Isaac Claims Now!

September 25th, 2012

MHProNews has learned the Federal Housing Administration (FHA) issued a reminder to approved FHA lenders to promptly release hazard insurance funds to disaster victims of Hurricane Isaac, as per loan documents. The Mortgagee Letter says in the past some lenders used hazard insurance proceeds to pay off the mortgage, leaving the homeowners no funds to rebuild homes and lives. FHA’s Acting Commissioner Carol Galante says, “FHA Lenders are always required to follow our guidance and, particularly following a devastating disaster like Hurricane Isaac, it is important that FHA take affirmative steps to ensure that is the case.” The lender must be listed as “Loss Payee,” which protects the lender, but also ensures proceeds are available once rebuilding of the home begins. For the full HUD press release, click here.

(Photo credit: Huffington Post/Getty)


Matthew Silver - Reporter at Large
Soheyla Kovach - Support Services
L.A. 'Tony' Kovach - Publisher, Editor and Marketing Director. To submit a news tip, please click here: iReportMHNewsTips@MHMSM.com
Comments are closed.