Among the challenges in disbursing recovery funds efficiently in the wake of Hurricane Sandy have been multiple lender insurance policies, HUD secretary Shaun Donovan said at a hearing on
Donovan said there was a “huge problem” due to the dozens of different polices held by different lenders, in response to questions about why disbursement of funds to homeowners in affected areas was not faster. He said this challenge in working with the industry and the government-sponsored enterprises shows a need for “a single consistent policy around insurance disbursements.”
“We could be faster on the insurance,” the secretary of the Department of Housing and Urban Development, who also is the chair of the Hurricane Sandy Rebuilding Task Force, said.
While disbursement of funds in Sandy’s wake could have been better, Donovan said it was an improvement on what was seen in the wake of other previous natural disasters such as Hurricane Katrina.
