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My Mom is refinancing her co-op. She is almost done with the process and the management company emailed her today saying she had fill out a refinance application before the recognition agreements were signed. I said to her “wth is that?” She showed me the application and its a blank financial statement as if she buying a co-op asking for all financials credit report and asking for $250 application fee. I told her don't fill it because there is no reason to give this info when she is already a shareholder.
There is nothing in the by-laws, proprietary lease talking about this. She already paid $500 for the questionnaire which ok.
Has anybody every heard of refinance application required by management?
yes, many co-ops require financial disclosure for refi. co-op has to sign the agreement so needs to know the details. although most re-fis are for less money i have seen folks take additional cash in the re-fi and impact debt to income ratio.
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This is very common, especially if the shareholder is borrowing additional money against their apartment. The coop's shares are being used as collateral and the board has a right to guarantee financial security.
That said, board review of the whole financial package for a straight refinance is pretty silly. We did away with that requirement in our building many years ago. All you have to pay now is the fee for the managing agent to fill out the bank's Coop Questionnaire. No board approval is required for a basic refinance. But other coops can and will vary on this policy.
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