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

B-2-01, Property Insurance Requirements Applicable to All Property Types (02/14/2024) 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... Verify at least annually that the selected insurer, policy amount and type of coverage meet Fannie Mae’s requirements as described in Selling Guide B7-3, Property and Flood Insurance. Ensure requirements contained in any negotiated contract are met. Published May 13, 2026 170 ✓ The servicer must... 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, reduced, or otherwise modified in a manner resulting in coverage that no longer meets Fannie Mae’s requirements, 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. 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. 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 provide the amount of coverage Fannie Mae requires 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. Published May 13, 2026 171 ✓ The servicer must... Obtain lender-placed insurance in response to notification that coverage is being cancelled, non- renewed, reduced, or otherwise modified in a manner resulting in coverage that no longer meets Fannie Mae’s requirements, in accordance with B-6-01, Lender-Placed Insurance Requirements. Recent Related Announcements The table below provides references to recently issued Announcements that are related to this topic. Announcements Issue Date Announcement SVC-2024-01 February 14, 2024 Announcement SVC-2022-08 December 21, 2022 Announcement SVC-2021-09 December 8, 2021 Announcement SVC-2020-07 December 9, 2020

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