E-4.4-03, Canceling Flood Insurance Coverage for Acquired Properties (11/13/2019)

When the property is acquired by Fannie Mae, the servicer must notify the flood insurance carrier to cancel flood insurance coverage and send it any unearned premium refund, unless prohibited by the policy or applicable law, within 14 days after the foreclosure sale or acceptance of an executed Mortgage Release.

Any inquiries regarding the cancellation of flood insurance should be addressed to Fannie Mae’s CPM division (see F-4-02, List of ContactsF-4-02, List of Contacts).

For information regarding the servicer’s responsibilities prior to liquidation for maintaining required flood insurance coverage and addressing insurable damage or potential damage due to a disaster event, see B-3-01, Flood Insurance Requirements Applicable to All Property TypesB-3-01, Flood Insurance Requirements Applicable to All Property Types, B-5-01, Insured Loss EventsB-5-01, Insured Loss Events, and D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a BorrowerD1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower.