Today Fannie Mae published an announcement that reminds servicers of their contractual obligation and responsibility to ensure that any mortgage insurance coverage required at the time a loan is delivered to Fannie Mae is maintained and remains in force to protect Fannie Mae's interests in its mortgage loans in accordance with the Servicing Guide. Fannie Mae is clarifying that servicers are prohibited from entering into agreements that are inconsistent with a Fannie Mae approved mortgage insurance policy. This is not a change to Fannie Mae's policy pertaining to mortgage insurance coverage, but a reinforcement of an existing policy.
Investors may also contact our Fixed-Income Securities Helpline at 1-800-BEST-MBS (1-800-237-8627) if they have additional questions.
Originally Published: April 15, 2011