Posts Tagged ‘insurance proceeds’

Will Sandy’s Destruction Spur Re-construction on the East Coast?

November 14th, 2012 Comments off

Housing industry analysts are skeptical about whether the construction that will result from Hurricane Sandy will offset the property damage that occurred. NationalMortgageNews reports Ken Simonson, president of the National Association for Business Economics and chief economist at the Associated General Contractors of America, does not regard it with much of a net positive. “Insurance proceeds will take awhile to turn into construction,” he says, especially projects that require tear down, clearing, design and engineering. He notes houses may not be replaced on a one-for-one basis, and many businesses that were wiped out may not re-open. Others that had targeted expansion may postpone their plans. He also does not expect much growth in construction jobs because there is already spare capacity. As MHProNews knows, winter weather will likely hinder a lot of the re-construction process.

(Photo credit: Spencer Platt/Getty Images)

FHA to Lenders: Pay Hurricane Isaac Claims Now!

September 25th, 2012 Comments off

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)