Fannie Mae and Freddie Mac Change Lender-Placed Insurance Deductible Requirements
Fannie Mae and Freddie Mac Change Lender-Placed Insurance Deductible Requirements
On October 14, 2015, Fannie Mae released Servicing Guide Announcement (SVC-2015-13) and Freddie Mac released Bulletin 2015-18 that included requirements for new lender-placed hazard insurance deductibles. The Announcement and Bulletin require lender placed deductibles based on the amount of insurance coverage:
- $1,000 deductible for coverage amounts less than $100,000
- $2,000 deductible for coverage amounts from $100,000 up to and including $250,000
- $2,500 deductible for coverage amounts greater than $250,000
Fannie Mae’s new requirements are not applicable to lender-placed flood, hail or wind only policies. Freddie Mac’s Bulletin did not explicitly exempt these coverage types. The effective date for implementing the new lender placed deductible requirements shall be no later than July 1, 2016.
PFI is currently reviewing the new requirements and will communicate with clients any impact or changes that will be implemented to comply.