Lenders Cut Red Tape For Sandy Insurance Payments

Law360, New York (December 12, 2012, 3:38 PM EST) -- Bank of America Corp., CitiMortgage Inc. and other major lenders have agreed to speed up insurance payments to New Yorkers affected by Superstorm Sandy and extend a grace period for mortgage payments by up to three months, state officials said Wednesday.

The move comes after homeowners complained to the New York Department of Financial Services and elected officials that banks and mortgage servicers had subjected them to stringent requirements before signing off on insurance checks. The DFS said those rules had caused frustrating and unacceptable delays...
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