Coop without a Fidelity Bond?

After months of work, our bank refused to issue us a mortgage to buy our coop. The Buildings lack of additional coverage for the elevator and lack of Fidelity Bond, i.e. employment dishonesty clause, i.e. crime clause. The coop is self managed btw. However the sellers broker recommended a mortgage broker who when I brought this up said basically "no problem" I would much rather go with a bank for... [more]

After months of work, our bank refused to issue us a mortgage to buy our coop. The Buildings lack of additional coverage for the elevator and lack of Fidelity Bond, i.e. employment dishonesty clause, i.e. crime clause. The coop is self managed btw. However the sellers broker recommended a mortgage broker who when I brought this up said basically "no problem" I would much rather go with a bank for the mortgage. I need to get my attorney to help with this, but in the meantime, I thought possibly i could get some feedback from the forums here. Does umbrella coverage cover fraud and theft if anyone from the board decides to run off? If the bank will not issue a mortgage based on lack of a Fidelity Bond what really does this tell you? Is it possible that past malfeasance on the board occurred and now they cannot get it? Is a Fidelity Bond really that important when all is said and done? thank you [less]