FNMA Servicing Guide B-3 — Flood Insurance Requirements

fnma-svc-b-3

Servicing Guide Chapter B-3 sets the servicer's flood-insurance responsibilities including no lapse, SFHA remap response, and NFIP lapse handling.

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source:
  type: regulation
  id: fnma-svc-b-3
  authority: FNMA Servicing Guide B-3 — Flood Insurance Requirements
  description: |
    Servicing Guide Chapter B-3 sets the servicer's flood-insurance responsibilities including no lapse, SFHA remap response, and NFIP lapse handling.
obligations:
  - id: fnma-svc-b-3-no-flood-coverage-lapse
    canonical_id: fnma-svc-b-3-no-flood-coverage-lapse
    section: FNMA Servicing Guide B-3-01 — Flood Insurance Requirements Applicable to All Property Types
    description: |
      [LENDER] must ensure the property securing the mortgage loan is
      adequately protected by flood insurance when required, with no lapses
      of coverage.
    type: do
    audit_question: For every Fannie Mae mortgage loan requiring flood insurance, can [LENDER] evidence continuous coverage with no lapse (excepting an NFIP-lapse scenario handled per the B-3-01 NFIP-lapse procedures)?
    program_review: Does the program ensure flood-required properties are continuously protected with no coverage lapse (accounting for the NFIP-lapse handling procedures)?
    file_review: For flood-required loans, confirm continuous coverage with no lapse, per the NFIP-lapse procedures where applicable.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: escrow_analyst
    secondary_owner_role: insurance_specialist
    cadence: continuous
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fnma
      - servicing-guide
      - flood-insurance
      - no-lapse
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide B-3-01
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: cf63a82bbb4adfba
      fetched_at: '2026-05-22T23:53:19Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: |-
        Ensure the property securing the mortgage loan is adequately protected by ﬂood insurance when
        required, with no lapses of coverage (see Requirements During a National Flood Insurance
        Program Lapse for servicing mortgage loans impacted by a lapse of the NFIP).
      drafter_attestation: |
        Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter B-3) at 2026-05-22.
    promoted_at: '2026-05-23T00:25:09+00:00'
    promoted_from: fnma-svc-b-3-roundb-v1.yaml
  - id: fnma-svc-b-3-sfha-remap-120-day
    canonical_id: fnma-svc-b-3-sfha-remap-120-day
    section: FNMA Servicing Guide B-3-01 — Requirements When a Property's Flood Zone Status Changes
    description: |
      When a property is remapped into an SFHA and the property is located in
      a participating community under the NFIP, [LENDER] must obtain the
      required flood insurance coverage within 120 days after the effective
      date of the remapping even if the borrower refuses to obtain the
      required coverage or to pay a disputed premium.
    type: do
    audit_question: For every Fannie Mae mortgage loan remapped into an SFHA in an NFIP participating community, can [LENDER] evidence required flood coverage obtained within 120 days after the effective date of the remapping, even where the borrower refused to obtain coverage or pay the premium?
    program_review: Does the program account for SFHA remapping — obtaining required flood coverage within 120 days after the remapping effective date even if the borrower refuses to obtain coverage or pay a disputed premium (force-placement path)?
    file_review: For loans remapped into an SFHA (NFIP participating community), confirm flood coverage was obtained within 120 days of the remapping effective date, including borrower-refusal cases.
    judgment: false
    feeds: []
    workflow_phase: servicing
    owner_role: escrow_analyst
    secondary_owner_role: insurance_specialist
    cadence: per-event
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - fnma
      - servicing-guide
      - flood-insurance
      - sfha-remap
      - 120-day
      - promoted
    primary_source:
      tier: 1
      authority: FNMA Servicing Guide B-3-01
      source_class: fnma-guide
      source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
      snapshot_id: cf63a82bbb4adfba
      fetched_at: '2026-05-22T23:53:19Z'
      content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
      paragraph_quote: |-
        obtain the required coverage within 120 days after
        the eﬀective date of the remapping even if the
        borrower refuses to obtain the required coverage or
        to pay a disputed premium.
      drafter_attestation: |
        Copied verbatim from FNMA Servicing Guide snapshot cf63a82bbb4adfba (chapter B-3) at 2026-05-22.
    promoted_at: '2026-05-23T00:25:09+00:00'
    promoted_from: fnma-svc-b-3-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T00:25:09+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\_round_b_drafts\fnma-svc-b-3-roundb-v1.yaml
    candidates_promoted: 2
    candidates_skipped_existing: 0

Verbatim regulatory text (2)

Verbatim provisions from FNMA Servicing Guide B-3 — Flood Insurance Requirements — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FNMA Servicing Guide B-3-01 — Flood Insurance Requirements Applicable to All Property Types

Ensure the property securing the mortgage loan is adequately protected by ﬂood insurance when required, with no lapses of coverage (see Requirements During a National Flood Insurance Program Lapse for servicing mortgage loans impacted by a lapse of the NFIP).

Source: FNMA Servicing Guide B-3-01 · source URL · snapshot cf63a82bbb4adfba

FNMA Servicing Guide B-3-01 — Requirements When a Property's Flood Zone Status Changes

obtain the required coverage within 120 days after the eﬀective date of the remapping even if the borrower refuses to obtain the required coverage or to pay a disputed premium.

Source: FNMA Servicing Guide B-3-01 · source URL · snapshot cf63a82bbb4adfba