HELP!!! Does a mortgage insurance company have any say

[Bryan DeWolfe]

I am scheduled to close in about a week on a short sale with bank approval on both the first and second. ( both are through the same bank) But now I am being told that the mortgage insurance company for the 2nd loan is saying that they never approved this. My question is does the mortgage insurance company even have a legal position to do that? Does the end decision rest with the bank and shouldn't any issues that the insurance company has be delt directly between themselves and the bank that is approving the short sale?

And any further information that all of you at there feel is important
please share.

Thank you