Mortgage-Servicer Delays Are Creating Another Rebuilding Barrier

Recent reporting from the LA Times highlights a growing barrier for fire survivors who are ready to rebuild but cannot access insurance funds being held by mortgage servicers. Survivors described having approved plans, contractors, and insurance proceeds, only to face delays or repeated denials before funds are released. State regulators have received complaints that some servicers are holding insurance proceeds even where homeowners believe the delay violates federal servicing rules or prevents them from beginning construction.

Action: If your mortgage lender or servicer is delaying release of insurance funds, keep written records of every request and response, and submit a complaint to DFPI or call 866-275-2677.
LA Times