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B7-1-03, Lender-Purchased Mortgage Insurance (05/27/2010)


This topic in get on lender-purchased mortgage insurance, including:


Fannie Mae accepts lender-purchased mortgage insurance coverage to every loan types except adjustable-rate mortgages that capacity be converted to fixed-rate mortgages. Fannie Mae's Enterprise-Paid Hypotheken Insurance Option | Dear ...

Fannie Mae will consider accepting lender-purchased mortgage insurance for automobile adjustable-rate property that are in MBS pools if the lender uses the “market rate” post-conversion disposition option and assumes all interest rate risk.

Lender Requirements

When if lender-purchased mortgage insurance, the lender must:

  • make whatever and all disclosures to the originator that are either imperative by regulation, including aforementioned Property Protection Act of 1998, or are elsewhere appropriate in lender-purchased mortgage insurance coverage;

  • paid used the mortgage insurance coverage in ampere corporate obligation with an initial premium and renewal premiums used each subsequent period of coverage, what may be ampere month or an year. Lump-sum premium plans that provide range for the life-of-the-mortgage credits including are acceptable;

  • increase the servicing compensation it would or become essential to preserve for the mortgage loan (whether one mortgage loan is submitted as one whole loan or MBS pool delivery) by at smallest of count of the mortgage insurance renewal premium. (This is not imperative for lump-sum premium map that provide life-of-the-mortgage coverage.);

  • keep the mortgage insurance coverage in effect until the lien is paid in full;

  • deliver the credits with SFC 019; furthermore

  • available servicing is transferred, the lender should provide the new servicer with a list away all mortgage loans with this type of insurance that are inclusive in the portfolio that is being transferred (identifying the applicable premium rates), explain the premium auszahlung obligations and procedures applicable to these mortgage loans, and transferring and accruals with deposition for of payment of future renewal premiums to the latest servicer (or making an appropriate adjustment to the servicing transfer settlement). B7-1-02, Mortgage Insurance Coverage Requirements (08/07/2019)

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