California Gov. Gavin Newsom announced his support for new legislation designed to ensure that homeowners lenders benefit from the interest earned on insurance payouts, particularly those impacted by the recent Los Angeles County destructive wildfires.
California law requires lenders to pay homeowners interest on escrowed funds for property taxes and insurance, but it does not extend this requirement to insurance payouts that are held in escrow. Current state law allows lenders to collect interest on insurance funds held in escrow after a disaster – and since rebuilding can take months or even years to complete, these funds can accrue significant interest.
The legislation, authored by Assemblymember John Harabedian (D-Pasadena) would amend state law to require lenders to pay homeowners the interest earned on post-loss insurance payouts.
“Homeowners rebuilding after a disaster need all the support they can get, including the interest earned on their insurance funds,” said Newsom in a statement. “This is a commonsense solution that ensures that they receive every resource available to help them recover and rebuild.”
“Homeowners, not insurance companies, should receive the interest earned on their insurance payouts,” added Harabedian. “Many Angelenos devastated by these wildfires have lost nearly everything; they are struggling and need every bit of financial support. This bill puts people over profits, ensuring that rightful insurance payments go to those who need them most.”
Photo courtesy of Gov. Newsom’s Instagram page
This Guy just wants anyone that had their houses burned to be bought by special interest. He was gitty, almost dancing over the idea of getting special developers in there to buy these families properties. I lost all focus on whatever he was saying after the interview.
Impeach this knucklehead