Newsday has a story today about Long Island homeowners who can’t rebuild in the aftermath of Hurricane Sandy because the checks they receive are also in the name of the banks and mortgage companies. The lenders, in turn, must inspect and sign off on each home before checks can be cashed. It is not happening. Lenders are hamstrung.
We can thank all those mortgage banking practices (Dodd-Frank) which were supposed to prevent insurance fraud. They are now red tape and President Obama has not lifted a finger to move things along.
Newsday refers to the Dodd-Frank red tape as “well-intentioned” and doesn’t even refer to it by name so us peons don’t figure it out.
Remember when President Barack Obama told emergency response officials in early November to cut through government “red tape” and work without delay to assist areas ravaged by Hurricane Sandy? He made the same statement when the Hurricane was bearing down on Long Island. He has made that statement many times since.
“There’s nothing more important than getting this right,” the president said at the beginning of a briefing with officials from the Federal Emergency Management Administration, the Department of Homeland Security, and state and local governments.
Go to 2:22 to hear the president talk about cutting the red tape:
Check out the mind-blowing Neil Cavuto interview with a Hurricane Sandy victim, a Mr. McGrath: