HOA Loan and Insurance Quotes

I understand that there is a 1% origination fee, payable at loan closing. Submitting this form puts me under no obligation. *


Subscribe to Blog

Your email:

Follow Us

Looking for answers?

condo association blogCan't find the answer you're looking for?  Ask your question here and we'll post it in our blog.

Browse by Topic

Most Popular Posts

Condo Association Management Blog

Current Articles | RSS Feed RSS Feed

Condo association requirements for fidelity bonds per state

Posted on Mon, Feb 22, 2010 @ 05:44 AM
  
  
  
  
  

Our condo association recently allowed the fidelity bond to fidelity bondslapse. As result, one person seeking a reverse mortgage was refused by his bank, which gave the lack of a fidelity bond as the reason for the refusal. What are the requirements for a carrying fidelity bond in New York State and other states?

Get a free condo association insurance quote

Tags: , ,

COMMENTS

In Massachusetts, the condominium act requires fiedlity insruance for 3 months of assessements minimum. 
 
 
 
Stephen Marcus 
 
Marcus Errico Emmer & Brooks 
 
781.843.5000

posted @ Monday, February 22, 2010 6:15 AM by Stephen Marcus

In Florida is not required but is highly recommend to have Fidelity Bond

posted @ Monday, February 22, 2010 8:44 AM by Jose E. Humaran

FHA and FNMA (Fannie Mae) are now both requiring fidelity bonds. FHA requires 3 months of assessments PLUS reserve funds be covered. Fannie Mae, in my understanding, is requiring covering 3 months of assessments. The average price for a five member board for $100,000 worth of coverage is about $300 or so dollars. I don't know what kind of deductible that is - i think $1,000. 
 
Check with your insurance agent and legal counsel.

posted @ Tuesday, February 23, 2010 6:53 PM by Joe Schuirmann

How about the laws for the state of Texas? Anyone know if a Fidelity Bond is a requirement by law? Help!  
 
Thanks

posted @ Wednesday, March 03, 2010 2:20 PM by K Reed

Are condo's in new york state required by law to carry a fidelity bond?

posted @ Saturday, July 10, 2010 3:33 PM by Anthony Cantasano

What can a person do if the HOA refuses to get a fidelity bond. I am unable to close on the sale of my condo because my hoa will not comply with the required fidelity bond. My condo is located in NYC. Help Please!!!

posted @ Wednesday, October 13, 2010 4:35 PM by susan

Is Fidelity Insurance required for the State of DE Condos and what is the required amount?

posted @ Thursday, October 28, 2010 9:01 AM by Ann Mumma

I also am unable to sell in Arizona because my HOA has employee dishonesty insurance, but Fannie Mae says we need fidelity bond. What's the difference?

posted @ Thursday, October 28, 2010 7:43 PM by Nancy

What can a person do if the HOA refuses to get a fidelity bond. I am unable to close on the sale of my condo because my hoa will not comply with the required fidelity bond. My condo is located in NYC. Help Please!!! What was the answer to this question? Thank you!

posted @ Friday, October 29, 2010 1:09 PM by suzanne smith

The problem is that Fidelity Bond and Fidelity Insurance are two completely different things even though both provide protection against losses due to employee dishonesty. One is a guarantee and the other is an indemnity contract. The bond grantees the loss but has an indemnity agreement which the Condo. Association will have to make good in case the bond is used. The insurance indemnifies against the loss in exchange of a pre-paid premium and no indemnity from the Condo. Association is enforced. The bond costs 2% of the limit while the insurance could range anywhere from $150 to $300 depending on the limit. 
The HUD Mortgagee Memorandum 2009-46B dated Nov. 2009 list either Fidelity Bond/Fidelity Insurance as a requirement.  
Hence, the question is: Is either one OK to comply with the requirements? 
Anyone has an answer to this?

posted @ Tuesday, December 21, 2010 9:42 PM by Jay Guerra

FL it is mandatory to have fidelity bonding in place - you need to read the FL state statutes before you post wrong information

posted @ Friday, April 29, 2011 2:58 PM by kit

Our HOA does not have a Fidelity bond in place. California 
 
What does the law require here?

posted @ Tuesday, August 09, 2011 12:31 PM by La Rose

There are many Moncler Outlet with different types of movements on the market, so people don't know which one to choose.Welcome to our fabulous collection of Moncler Jackets!Here You can find all high quality Moncler Coats,please feel free to buy.The cheaper and best Reebok Zigtech on our website is one of hot wrist shoes in lowest price.

posted @ Wednesday, October 12, 2011 2:47 AM by Moncler Coats+reebokzigt

This may help some of you, alot of times the HOA communities don't have employees so they don't have a fidelity bond. But they contract a management co to run the HOA so essentially that is their "employee", you would call the management co and ask for the fidelity bond or employee dishonest policy for themselves not for the HOA. Hope that helps.

posted @ Monday, December 05, 2011 11:23 AM by Andy Price

Post Comment
Name
 *
Email
 *
Website (optional)
Comment
 *

Allowed tags: <a> link, <b> bold, <i> italics