Fannie Mae issued Reverse Mortgage Servicing Announcement RVS-2016-01 (Announcement). The Announcement updates the Reverse Mortgage Loan Servicing Manual to no longer require that, for HECMs, hazard insurance coverage provide for claims to be settled on a replacement cost basis. The requirements for hazard insurance policies for Home Keeper mortgage loans remain unchanged. Servicers are encouraged to implement this policy change immediately; but must implement the change no later than November 1, 2016.
Click here to view the Fannie Mae Reverse Mortgage Servicing Announcement
