mortgage insurance review: Insurance claim checks and 21st Mortgage 1

I recently had damage done to my manufacture home and after receiving the check for the repairs I was told that in order to cash the check I have to get an endorsment from my Mortgage company. When I called 21st mortgage. I was told that I have to sign the check send it to them along with a copy of the insurance claim and a cost of materials for the work. Then at that time they will send me a check for the materials. Then after the work is completed I have to send them the final bill and copies of the home showing the work completed and they will send me another check to pay the final bill. NOW here is when it really gets fun. IF the work completed is less then the amount of the check 21st Mortgage keeps the remaining balance.