We were contacted by this entity to provide a certificate of Insurance for a pending sale. A certificate of Insurance legally via endorsment adds on a policy - in this case a master policy of a non profit California Corporation, a financial institution as a loss payee in the event of a catastrophic loss. We provide thousand of unit owners with this data and it has to be accurate since it will be entered into an Insurance company data base and master policy.
The certificate was provided on March 26th listing Peoples Bank as the loss payee. Important note here: The bank never loaned money to the Homeowners association. Only the potential unit owner was borrowing money, and Freddie Mac and Fannie Mae, as well as civil code 1365 in California and the Homeowners Association Covenants Conditions and Restrictions spell out how this issuance of mortgages is to be done.
The certificate being issued and provided same day of request was now declined by Peoples Bank since the Peoples Bank under orders and demands of US Bank now demanded that a ful copy of the master policy of the Association be provided to US Bank so they could decide if the loan was to be funded for the potential unit owner. It is customary and demanded that the certificate must include the name of the financial institution and the loan and loan amount number. Without those the agent is liable for allowing the master policy to be in full debt for the full amount of the master policy of the Association instead of the smaller loan amount provided.
In 14 yrs in the industry and being a member of several Homeowners protection organizations I have never seen such brutal lying and manipulation of information in order to provide a loan, The individuals above emailed my office and demanded the master policy several times. Under law, I cannot provide the master policy to any one but the board of directors and or manager. The prospective unit owner in this case is not a resident and cannot be provided a policy.
The Peoples Bank folks even lied on the telephone to me inthe present of an Insurance carrier underwriter on April 4th at 12:41 pm representing a different person demaning the policy now for Wells Fargo Bank since US Bank and them could not obtain the master policy copy from us. Having worked on hundreds of time with Wells Fargo folks I placed several calls to them and all denied that Wells Fargo as was represented on the telephone to me, ever request full copies of the policy since by law they are NOT entitled to such action.
The lies and harassment continued to us and the property manager on the 4th of April by Roger DeSalles having the seller demand the policy now for the benefit of Wells Fargo which is a lie. If it was for Wells Fargo a new cert should have been requested with the correct data and the NEW loan numbers In talking with several brokers it became apparent that Peoples bank wants to own the full master policy value, intentionally violating the CC&Rs of this HOA, manipulating the unit owners buyer and seller to obtain copies of the policy so the bank can dictate changes to the policy at the sheer expense of every other unit owner in that Association so they can be the full beneficiaries of the value of the policy in the event of a catastrophic loss.
A financial institution should have ethics and integrity. These people in my firm opinion have none. Massive fraud at my company's expense and legal responsibilities is not something I take lightly and for me to take this action and notify The Community Association Insitute and Executive Home Owners Council means we do things right and legally and will not stand for the continuous abuse we start seeing more and more by loan brokers and some banks.
My client, the Homeowners Association is now exposed to fraud due to hungry loan brokers that will stop at nothing in order to get a commission. We will also report today to the Better Business Bureau in the Greater San Francisco area and also Dept of Real Estate and Dept of Insurance. This alleged broker institution has refused to provide the loan amount as necessary and customary in this industry and considered normal and legal and did so by withholding material facts for the purpose of obtaining insurance and acting willfully and intentionally as a broker for the future buyer of the condo unit, and advising on insurance where no such insurance license is present.
We caution you on doing business with these people and perhaps you should select a different financial Institution, and if you are a homeowner in an HOA avoid them at any cost.