Lawmaker: Oklahoma Bill Would Help Homeowners with Insurance Claims

A bill filed in Oklahoma aims to help homeowners with insurance claim payments issued through mortgage companies.

Legislation filed by Oklahoma state Rep. Charles Ortega would give mortgage companies no more than 10 days to release an insurance claims check to the homeowner.

“I have received numerous constituent complaints regarding a mortgage company holding onto funds for weeks while homeowners face emergency repairs that must be made quickly,” Ortega, R-Altus, said in a statement released by the Oklahoma House of Representatives. “Two constituents had to borrow money to pay contractors while struggling with their mortgage company to release funds. One constituent waited for approximately one month. My legislation sets a reasonable time limit of 10 days, which I think is appropriate.”

Ortega, himself, experienced a delay in receiving the money from an insurance claim that was sent to his mortgage company, Midland Mortgage Co. of Oklahoma City, a division of MidFirst Bank.

“I waited for 35 days after paying for $31,000 in repairs to my roof, so I have a firsthand experience of the frustration many Oklahomans face,” Ortega said. “I understand the need for mortgage companies to ensure the integrity and value of their investment. Such long delays, however, are simply the result of poor customer service.”

House Bill 2788 would also:

• Prohibit mortgage companies from requiring repairs to any part of the property outside of the scope of the insurance claim
• Require mortgage companies to issue a written notice explaining their decision if they refuse to release funds
• Direct insurers and mortgage companies to release 50 percent of the claim monies directly to the homeowner if the property damage is valued at more than $20,000 to ensure a down payment for contractors

Source: Oklahoma House of Representatives

Topics Legislation Claims Homeowners Oklahoma