A3-5-04, Reporting Fidelity Bond and Errors and Omissions Events (12/04/2019)

The seller/servicer must report to Fannie Mae within 30 days after discovery of the occurrence of a single fidelity bond or errors and omissions policy loss that is mortgage related and the amount exceeds the lesser of $250,000 or the policy’s deductible, even when no claim will be filed or when Fannie Mae’s interest will not be affected.

In addition, the seller/servicer must report to Fannie Mae within ten business days of receipt of a notice from the insurer regarding the intended cancellation, reduction, nonrenewal, or restrictive modification of the seller/servicer’s fidelity bond or errors and omissions policy. The seller/servicer must send Fannie Mae a copy of the insurer’s notice, describe in detail the reason for the insurer’s action if it is not stated in the notice, and explain the efforts it has made to obtain replacement coverage or to otherwise satisfy Fannie Mae’s insurance requirements. See E-1-02, List of ContactsE-1-02, List of Contacts for the email address for reporting.