i am selling a co-op and the buyers mortgage company wants the co-op board to increase the insurance .

Asked by Matt, Long Island, KS Thu Jul 16, 2009

why must they do this if they claim they have enough already ? they also said the buyer could purchase more or the deal falls thru . why is this ? is this a scam the mortgage brokers are doing ? thankyou

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Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Mon Jul 20, 2009
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.
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