Lenders to speed NY insurance claims - NEWS10 ABC: Albany, New York News, Weather, Sports

Lenders to speed NY insurance claims

ALBANY, N.Y. (AP) - State officials say an agreement to be announced Wednesday will resolve an unexpected snag that's been delaying by weeks advance insurance payments to property owners hit by Superstorm Sandy.

The delays by mortgage banks processing checks from insurance companies had depressed recovery efforts in neighborhoods.

Eleven major lending companies have agreed with the state Department of Financial Services to speed up their endorsements of the borrowers' initial insurance checks, typically worth $5,000 to $20,000.

Benjamin Lawsky of the state financial services department tells The Associated Press the lenders have agreed to remove some new hurdles created for Sandy victims intended to protect the lenders' collateral in heavily damaged properties.

Lawsky says lenders will immediately release insurance checks intended to make a home habitable and to pay expenses for living elsewhere.