Fannie Mae issued Servicing Guide Announcement SVC-2018-09 (Announcement), setting forth updates to the Servicing Guide. Per the Announcement, Fannie Mae: updated policies related to property insurance carrier requirements and flood insurance coverage requirements; consolidated policies related to property insurance carrier requirements from the Servicing Guide (Chapter B-2-01) into the Selling Guide (Chapter B7-3-01); consolidated policies related to flood insurance coverage requirements from the Servicing Guide (Chapter B-3) into the Selling Guide (B7-3-07); and revised requirements for managing loss draft proceeds and other unapplied funds held in a taxes and insurance custodial account. Fannie Mae also extended the effective dates for certain borrower-initiated conventional mortgage insurance termination policies announced in Lender Letter LL-2018-03. The new mandatory effective date is September 1, 2019 (rather than March 1, 2019) and the new available date for borrower-initiated requests for termination of conventional mortgage insurance based on current value of the property is March 1, 2019 (rather than January 1, 2019). The updated property insurance carrier requirements and flood insurance coverage requirements are effective March 1, 2019 (servicers are, however, encouraged to implement the updates immediately). The revised requirements for managing loss draft proceeds and other unapplied funds held in a taxes and insurance custodial account are effective April 1, 2019. All other changes are effective immediately.
Click Here to View the Fannie Mae Servicing Guide Announcement SVC-2018-09
