Servicing Guide

The Servicing Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Servicing Guide in PDF format.

View All Servicing Policy Updates

Download PDF

Hint: Ask in a form of a question.

What are the servicer requirements for property insurance on FHA mortgage loans that will be conveyed to HUD once the property has been acquired?

The following table describes servicer requirements for FHA mortgage loans that will be conveyed to HUD.

The servicer must...
 

Obtain an endorsement to the property insurance policy to reflect Fannie Mae's interests immediately following the foreclosure sale.

 

Cancel the insurance coverage on the date the deed to HUD is filed for record and include the amount of the refund, or an estimated refund amount if the refund has not been received, as a deduction on the FHA MI claim.

If the property cannot be conveyed to HUD, the servicer must instead adhere to the policy described for conventional mortgage loans in For Conventional Mortgage Loans earlier in this topic.

When the servicer receives the refund of the unearned property insurance premium from the insurer, it must immediately remit the funds to Fannie Mae as a “special remittance.” However, if Fannie Mae has not reimbursed the servicer for all of its outstanding foreclosure expenses, the servicer may keep the property insurance premium refund and show it as a credit on the request for expense reimbursement that it submits to request reimbursement of its outstanding expenses for the mortgage loan.

Note: This does not pertain to property insurance proceeds, but only premium refunds.

For more information please see: E-4.4-01: Continuing or Canceling Property Insurance Coverage 

Related Articles

What determines if property insurance coverage should be continued or cancelled for an acquired property?

The servicer's action regarding the continuation or cancellation of property insurance coverage following the foreclosure sale or acceptance of an...

Read more

What loan types are Fannie Mae's property recovery firms responsible for filing property loss insurance claims on?

Fannie Mae’s property recovery firms assume all responsibilities for filing any necessary property insurance claims for losses identified post-...

Read more

What are the servicer's responsibilities related to the cancellation of property insurance coverage for all first and second lien conventional mortgage loans when the property is acquired?

The following table describes the servicer's responsibilities related to the cancellation of property insurance coverage for all first and second lien...

Read more

What are the requirements for canceling property insurance coverage for VA mortgage loans?

For VA mortgage loans that will be conveyed to VA, the servicer must endorse the applicable property insurance policy over to VA immediately following the...

Read more

What are the requirements for canceling property insurance coverage for RD property loans?

For modified special servicing option or regular servicing option RD mortgage loans, the servicer's decision about canceling the property insurance...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
X
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.
     

Email Us
If you still have Technical Support questions, feel free to emailAsk_Poli@fanniemae.com.