If you wanted to have 'Hello' between the two tables when the frequency is Bi-Weekly, you use only:
{IF{MERGEFIELD Selected_Product_Frequency}= "Bi-Weekly" "Hello"}
between those two tables. As it is, you have an IF test that incorporates the whole 'BorrowerProductQuery' table as part of the condition being tested against 'Bi-Weekly'. That'll never fly.
I actually said only that the \* MERGEFORMAT switch is unnecessary. The MERGEFIELD designation is most definitely required. You're getting the \* MERGEFORMAT switches because you're leaving the 'Preserve formatting during updates' option checked when you insert the fields. Word will also add them (rather unhelpfully) if you reformat the fields after inserting them.

__________________
Cheers,
Paul Edstein
[Fmr MS MVP - Word]