Mortgage companies ability to release claim funds

              INTERIM STUDY REPORT
Economic Development Committee
Rep. Randy McDaniel, Chairman
Oklahoma House of Representatives
Interim Study 12-055, Rep. Charles Ortega
September 20, 2012
Mortgage companies ability to release claim funds.
Brenda Risner
Concerned Citizen
• Ms. Risner expressed frustration with her mortgage company, Wells Fargo, during the
insurance claim process.
• On February 24, 2012 Ms. Risner’s insurance company issued a check for $8,000 made out to
her, the homeowner and Wells Fargo. Six months later, she received the entirety of the funds
from Wells Fargo.
• The insurance proceeds went into escrow an account until paperwork was approved by Wells
Fargo. The money was released as checks to the contractors whom the homeowner employed.
• Spoke with 26 different employees throughout the process.
Greg Sexton
Altus, OK
Concerned Citizen
• Mr. Sexton also expressed frustration with his mortgage company, Wells Fargo, during the
insurance claim process.
• Insurance company and contractors came out and completed claim quickly.
• Mr. Sexton had to pay $2,000 out of own pocket up front since Wells Fargo did not release any
funds by the time the contractor needed to be paid. Subsequently received 1/3 of $13,000 of the
insurance claim funds.
• Wells Fargo was also requesting semi completion of work to release the appropriate portion of
the funds. Also requested the contractor’s tax identification information.
• Believes Wells Fargo was hanging on to the money as long as they could and changed the rules
“in the middle of the game.”
• Original mortgage was with Wells Fargo. Mr. Sexton selected Wells Fargo because it had the
best rates at the time of purchase.
• There was no local office that handled insurance proceeds release. The claim was handled and
everyone Mr. Sexton talked to was in California. He spoke with about four or six people during
the process.
Trae Little
Midfirst Bank/Midland Mortgage
• Customers come to Mr. Little and say “I have an insurance check with your name and my
name. What do I do?” Mr. Little refers them to the appropriate process.
• Mr. Little expressed frustration that he couldn’t do more on their behalf.