Fannie Mae Selling Guide Announcement – Insurance Updates
On December 14th, Fannie Mae published Selling Guide Announcement 2022-10. Within this Announcement, Fannie Mae provided numerous Selling Guide updates on a broad range of topics including updated requirements to property, flood and project insurance requirements.
Due to the extent of revisions, Fannie Mae included an Attachment to the announcement that describes clarifications, increased flexibilities, and new requirements made in Selling Guide Chapters B7-3, Property and Flood Insurance and B7-4, Liability and Fidelity/Crime Insurance Requirements for Project Developments to better align their insurance requirements with current industry standards, and to address common lender and servicer questions.
- Lenders are encouraged to implement these changes immediately but must do so for all loans with application dates on and after May 1, 2023.
- Servicers are encouraged to implement these changes immediately but must do so for loans with insurance policies renewed or obtained on and after May 1, 2023.