CHICAGO-Does the Mortgage Bankers Association of America havestrength in numbers to convince the insurance industry tostandardize policies on coverage and paperwork? Members of an MBAtask force are not 100% sure, they indicated during this week'sconvention.

An MBA Commercial Real Estate/Multifamily Board of Governorstask force has been at work since February has been working onmodel certificates of insurance, which lenders have been forced torely on in lieu of actual policies, which often do not arrive untilsix months after deals close. The policies, rather thancertificates, often provide a clearer picture of coverage,including the often vague acts of terrorism that have vexed lendersand borrowers since Sept. 11, 2001.

MBA members have influence over “tens of billions of dollars ofinsurance premiums,” says Robert Vestewig, chief operating officerof Houston-based GEMSA Loan Services, LP. “This ought to give ussome market clout,” he suggests.

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