This is something that is a requirement from the bank. Banks are now requiring more fidelity bond insurance than they have in the past. This is not a scam, and is probably a directive from Fannie Mae, but seeing as it comes to us from the banks, I can't be sure. This is a very recent change, so my colleagues and I feel that eventually the co-op boards will catch on, and they will increase their insurance. This will probably happen as soon as someone on the board wants to refinance their mortgage.