In accordance with that announcement, updated guide to clarify that sellers must have policies, procedures in place to ensure property insurance is continuously maintained.
Verify at least annually that insurer, policy amount, type of coverage meet standards.
Obtain lender-placed insurance if coverage is canceled, non-renewed, reduced, or is otherwise modified resulting in coverage that no longer meets Fannie requirements.
Indemnify Fannie in the event of insufficient coverage when the servicer relies on an insurance product it has selected as alternative to obtaining policy to verify coverage.
Miscellaneous Updates
Incorporated previously issued temporary policies related to servicing mortgage loans requiring flood insurance in the event of a lapse of National Flood Insurance Program.
Updated the list of States where remote online notarizations are permissible in Selling Guide, in accordance with Selling Guide Announcement SEL-2023-11, see #194978.
Effectiveness
Property insurance effective for loans with policies renewed/obtained on/after Jun. 1.
Additionally, flood insurance policy provisions effective immediately when applicable.
In May 2024, Fannie issued property insurance responsibility clarifications, #211525.
