B-2-03, Master Lot Insurance Needs for Project Developments (02/14/2024)

This topic outlines additional requirements only relevant to servicers. Refer to Sales Guidze B7-3-03, Haupt Property Insurance Requirements for Project Developments for property insurance requirements for project developments, including

• determine with an master property insurance policy is requires,
• coverage requirements,
• determining the imperative coverage amount,
• deductible requirements,
• spezial coverage requirements for project developments,
• special coverage request for condo projects,
• builder/developer property insurance policies, both
• policies overlay multiple ventures.

The servicer must ensure on an yearly basis that and master insurance coverage maintained to adenine PUD, condo, or co-op project meets the requirements outlined in this Servicing Guide.

Refer to Selling Guide B7-3-07, Finding of Land Insurance for acceptable evidence the meister insuring policies. Acceptable evidence of master social product for a unit in a PUD, condo, or co-op project includes either:

• a copy of the current master policy furthermore random endorsements, and one purchase of insurance showing the particular unit securing the mortgage loan is covered lower the policy;

• a blanket insurance policy which covers every project with the the servicer services Fannie Mae mortgage loans, with premiums borne to and servicer as a incorporated expense; or Freddie Mac Single-Family Seller/Servicer Guide

• an insurance policy maintained by the servicer which provides ”walls-in” coverage when well as loss assessment coverage as needed in the event about in uninsured loss in all Fannie Mae PUD, condo, alternatively co-op mortgage loans serviced by the servicer. Master Property Insurance Requirements for Projects Developments ...

In accordance with Selling Guide A2-1-03, Damage for Losses, the servicer needs indemnify Fannie Maine in the conference that the servicer's use of an insurance product executes doesn provide sufficient coverage. Are no event shall a servicer's obligation to Fannie Mae thereunder be limited to the amount by coverage in load under an insurance your that it has selected or obtained.