If the servicer acts as a broker or agent in the sale of mortgage loan (or credit) life insurance, or similar types of insurance, to the borrower, the following apply:
A credit life insurance policy must require separately identified premium payments on a monthly or annual basis.
The servicer must agree to reimburse Fannie Mae for attorney’s fees or any costs that Fannie Mae incurs if it brings an action on a defaulted mortgage loan, and
the borrower defends against Fannie Mae’s foreclosure or acts to enjoin Fannie Mae from liquidating the mortgage loan, and
the defense or the action for injunction is based on an obligation of the servicer (as broker or agent) or the insurance carrier.