The following table outlines the servicer’s responsibilities for maintaining MI coverage.
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Obtain MI from companies Fannie Mae deems qualified mortgage insurers, as listed in Approved Mortgage Insurers and Related Identifiers . |
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Ensure the MI coverage Fannie Mae requires when it purchases or securitizes a mortgage loan remains in effect for as long as required by Fannie Mae. |
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Consult with MI providers for specific processes related to obtaining approvals, reporting, and other operational matters in connection with a workout option, if applicable. |
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Pay all renewal premiums promptly. See Reimbursement for Mortgage Insurance Premium Expenses in F-1-05, Expense Reimbursement. |
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Comply with all requirements under the Homeowners Protection Act of 1998 or other applicable law. |
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Provide mortgage insurers instructions that must
The servicer must follow the procedures in Instructing Mortgage Insurers to Release Data in F-1-02, Escrow, Taxes, Assessments, and Insurance for details on Fannie Mae’s requirements. |
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Maintain the borrower-purchased conventional MI, which was in effect when Fannie Mae acquired the mortgage loan, unless the conditions Fannie Mae imposes for replacing or cancelling the coverage are met. See B-8.1-03, Replacing Conventional Mortgage Insurance Policies and B-8.1-04, Termination of Conventional Mortgage Insurance for additional information. Lender-purchased MI for conventional mortgage loans must be kept in effect until the mortgage loan is paid in full. |
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Report rescissions, mortgage insurer-initiated cancellations, and claim denials to Fannie Mae no more than 30 days from the date of notification of the MI company’s determination to effect a rescission, mortgage insurer-initiated cancellation, or claim denial. The servicer must follow the procedures in Notifying Fannie Mae of Mortgage Insurance Rescissions, Claim Denials, or Cancellations in F-1-02, Escrow, Taxes, Assessments, and Insurance for details on Fannie Mae’s requirements. |
Without Fannie Mae’s prior written approval, the servicer must not enter into any agreement that
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modifies the terms of an approved MI master primary policy on mortgage loans delivered to Fannie Mae, or
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allows for loss sharing, indemnification, settlement, or similar agreements of any kind between the servicer and MI company that affect Fannie Mae’s interest in its mortgage loans.