In order to help clients provide documentation to borrowers which help them to choose hazard insurance policies which are acceptable to FNMA or FHLMC, we will be providing two new, “upon request” documents which contain a summary of the most applicable provisions of both of these GSEs requirements.
Cx18457 will contain a summary of relevant hazard insurance requirements found in FNMA 2013 Selling Guide B7-3. The document is split into the following sections:
- Right to Select Carrier
- Rating Requirements
- Coverage Requirements (including dynamic text which will print depending on the lien position of the loan and whether it is a construction-to-permanent one or not)
- Project Developments
- Additional Insurance Coverage
Cx18458 contains a summary of similar requirements found in FHLMC Single-Family Seller/Servicer Guide, Vol. 2, ch. 58. It is also split into sections:
- Licensing of Insurer
- Assessments
- Rating Requirements
- Coverage Requirements
- Project Developments
- Additional Insurance Coverage
Either of these documents may be requested to print, but not both. Once requested, these will print under the following conditions:
- “Document Package Type” equals “Initial Disclosure”;
- “Hazard Insurance is Required” equals “Yes”; and
- “Base Type” equals “Conventional.”
These documents will be available starting March 11, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
March 3, 2014
DR 149234