Lender is asking to be added to HOA Master Policy
Hi all,
I am having some issues going through a conventional finance of a condo I am buying here in Miami. This is the second lender that I have been through that has run into problems trying to close on this condo.
The lender is asking to be named as an additional insured on the HOA Master Policy. This is not the HO6 policy for my individual unit but the HOA insurance policy itself. The HOA is refusing as they say this is highly unusual and has never been required by a lender before with other owners who have purchased in this building with financing.
The mortgage broker insists that this is a standard request in order to be in compliance with Fannie Mae guidelines.
Can anyone or any lender give me any more clarity as to what exactly is going on? I can't imagine a large HOA with hundreds of units having to update their master insurance policy to include or remove lenders every time someone with financing bought or sold a unit.
Any help or clarification on this would be really appreciated.
Thanks!