Fannie Mae Servicing Guide B-2-01 — Property Insurance Requirements Applicable to All Property Types

Fannie Mae Servicing Guide B-2-01 — Property Insurance Requirements Applicable to All Property Types

Effective 2026-08-12 · publisher's stamp for this provision

B-2-01, Property Insurance Requirements Applicable to All Property Types (08/12/2026) Introduction This topic contains the following: Overview Servicer Responsibilities Related to Property Insurance for First Lien Mortgage Loans Servicer Responsibilities Related to Property Insurance for Second Lien Mortgage Loans Overview This topic describes additional requirements only applicable to servicers. Refer to Selling Guide B7-3-01, General Property Insurance Requirements for All Property Types for general property insurance requirements, including property insurer rating requirements, exceptions to insurer rating requirements, and other exceptions to property insurance requirements. Refer to Selling Guide B7-3-07, Evidence of Property Insurance for information on evidence of property insurance. Also, see Acceptable Evidence of Master Insurance Policies in B-2-03, Master Property Insurance Requirements for Project Developments. Servicer Responsibilities Related to Property Insurance for First Lien Mortgage Loans The servicer must have policies and procedures in place to ensure that required property insurance is continuously maintained on the subject property. The following table lists the servicer’s responsibilities applicable to all first lien mortgage loans owned or securitized by Fannie Mae unless otherwise noted. ✓ The servicer must... Confirm that the property insurance policy meets Fannie Mae's requirements for the applicable property type as described in B-2-02, Property Insurance Requirements for One- to Four-Unit Properties, B-2-03, Master Property Insurance Requirements for Project Developments and B-2-04, Property Insurance Requirements for Individual Units in a Project Development. ✓ The servicer must... Ensure requirements contained in any negotiated contract are met. Ensure property insurance premiums are paid. See B-1-01, Administering an Escrow Account and Paying Expenses for additional information. Obtain lender-placed insurance in response to notification that coverage is being cancelled, non-renewed, or has lapsed, in accordance with B-6-01, Lender-Placed Insurance Requirements. Contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts) to determine if additional coverage is needed as described in Selling Guide, B7-3-05, Additional Insurance Requirements. Change the insurance coverage for a mortgage loan when it is inadequate to protect Fannie Mae’s interests or, in the instance of lender-placed insurance, causes Fannie Mae to be over-insured. Examples include properties that become vacant and home renovation loans. See Selling Guide, B7-3-05, Additional Insurance Requirements for additional information. At least annually, provide a reminder to the borrower of their responsibility to maintain insurance on the property and recommend they contact their insurance provider to review their coverage. The servicer is authorized to include such reminder in or with another borrower communication and may refer the borrower to applicable borrower-facing insurance information on Fannie Mae's or the servicer's website. Additionally, the servicer is authorized to use any outreach method permitted by applicable law. Servicer Responsibilities Related to Property Insurance for Second Lien Mortgage Loans The following table lists the servicer’s responsibilities applicable to all second lien mortgage loans owned or securitized by Fannie Mae. ✓ The servicer must... Obtain and review a copy of the property insurance policy annually to determine if the insurance coverage meets Fannie Mae’s requirements. ✓ The servicer must... Require the borrower to obtain appropriate endorsements that will bring the coverage in line with Fannie Mae’s requirements if the existing property insurance policy does not comply with Fannie Mae's requirements and send a copy of these endorsements to the servicer of the first-lien mortgage loan. Ensure property insurance premiums are paid, see B-1-01, Administering an Escrow Account and Paying Expenses for additional information. Obtain lender-placed insurance in response to notification that coverage is being cancelled, non-renewed, or has lapsed, in accordance with B-6-01, Lender-Placed Insurance Requirements.

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