FREDDIE MAC & FANNIE MAE – PROPERTY INSURANCE UPDATES
FREDDIE MAC & FANNIE MAE – PROPERTY INSURANCE UPDATES
On March 18, 2026, Freddie Mac and Fannie Mae issued announcements to Sellers and Servicers regarding updates to property insurance requirements, along with other miscellaneous revisions to their selling and servicing guidelines. These changes were developed in coordination with the U.S. Federal Housing Finance Agency (FHFA) to promote alignment, streamline implementation, and reduce operational complexity. Corresponding updates to the Selling and Servicing Guides will be published at a later date.
The announcements outline property insurance changes that will take effect on a phased basis.
- Effective immediately, the updates include clarifications to property insurance and coverage sufficiency requirements applicable to one to‑ ‑four-unit properties, master property insurance for project developments, and HO‑6-unit owner policies, as well as increased flexibility in how replacement cost coverage may be evidenced.
- Effective for loans with application dates on or after July 1, 2026, the updates include changes to deductible requirements and additional standards related to when unit owner (HO‑6) coverage is required and the related coverage expectations.
- Effective January 1, 2027, the updates include servicing requirements related to annual insurance monitoring, borrower notifications for non‑compliant policies, acceptance of electronic evidence of insurance, and annual borrower insurance reminders.
Servicers must implement applicable changes by the stated effective dates and are encouraged to adopt the updates earlier where operationally feasible.
For additional details, please refer to:
- Freddie Mac: Guide Bulletin 2026‑C (March 18, 2026)
- Fannie Mae: Lender Letter LL‑2026‑03 (March 18, 2026)
We encourage all clients to review the announcements and guides in their entirety for additional information and effective dates for other miscellaneous announcements.
Proctor Loan Protector’s Compliance Team is actively reviewing these updates and assessing potential impacts to insurance tracking processes. If Proctor provides tracking services for your entity, relationship managers will reach out as the review progresses to discuss any changes that may be required to your business rules.