Annually and at the time of policy renewal, the servicer must ensure that master/blanket policies continue to meet Fannie Mae guidelines. If at any time, the servicer becomes aware the policy is no longer compliant with Fannie Mae guidelines, the servicer must make reasonable efforts to resolve the compliance issues. If the issues cannot be resolved, the servicer must contact its Fannie Mae Servicing Consultant or Portfolio Manager or Fannie Mae’s Single-Family Servicing Support Center at 1-800-2FANNIE (232-6642).
Some servicers may choose to use alternatives to verifying project master/blanket policies annually over the life of the mortgage as described in the Servicing Guide B-2-03, Property Insurance Requirements for Mortgage Loans Secured by a Unit in a PUD, Condo, or Co-op. Servicers should refer to that guidance before discontinuing the annual tracking of project insurance. The use of an alternative to verify master/blanket insurance coverage does not extend to annual verification of the HO-6 coverage, if separate coverage is required.