I guess it protects them from borrower's shopping mid-transaction. 

my family runs a mom and pop shop at a ski shop in tahoe.

Area has mix of older retail strips, motels, banks, gas stations, some QSR, a few independent restaurants, services (barber shops, etc.), and retail, warehouses, factories, and a business incubator for entrepreneurs. 

Look for areas with low vacancy rates, good schools, and proximity to amenities like shopping centers, parks, and public transportation.

I would say shop around for a different insurer. 

If you can utilize an FHA 203k loan that's the best of all worlds.I am here in Chicago to so if you'd like to link up and talk shop let me know!

Shop around, either with other banks or go through a finance broker.

I'm getting a lot of differing opinions from both real estate professionals and regulating bodies. 

Quote from @Chris Seveney: @Bernie BurkeIf you invest in a syndication make sure to get updated reviews - whether here on BP, or in other investment clubs, a lot of the buried bodies are making their way to the surface.  

It doesn't cost anything to shop around to see if you can find and qualify for.