Fannie Mae Reverse Mortgage Loan Servicing Manual Announcement RVS-2015-03
October 30, 2015
Reverse Mortgage Loan Servicing Manual Updates – Revised*
The Reverse Mortgage Loan Servicing Manual (Reverse Manual) has been updated to include the following:
- Updates to Lender-Placed Insurance Requirements
- Updates to Property Management Requirements
Each of these updates is described below. The servicer must review each topic in the Reverse Manual in its entirety to gain a full understanding of the policy changes.
Lender-Placed Insurance Requirements
Fannie Mae is updating the Reverse Manual to reflect the lender-placed insurance deductible requirements introduced in Servicing Guide Announcement SVC-2015-13 to include new lender-placed (hazard) insurance deductibles determined by the amount of insurance coverage as follows:
- $1,000 deductible for coverage amounts less than $100,000;
- $2,000 deductible for coverage amounts from $100,000 up to and including $250,000; and
- $2,500 deductible for coverage amounts greater than $250,000.
Lender-placed flood insurance, and lender-placed wind- or hail-only insurance policies are excluded from this requirement.
Updated Reverse Manual Topics
- Reverse Manual, 2-04, Hazard Insurance and Coverage Requirements
- Reverse Manual, 2-05, Lender-Placed Insurance Requirements
*Corrected 10/30/15* Effective Date
The servicer is encouraged to implement this policy change immediately, but must do so no later than July 1, 2016, to the extent permissible under applicable state insurance statutes and/or regulations, for lender-placed insurance policies renewed or obtained with an effective date on or after July 1, 2016.
Fannie Mae is updating its policies and requirements in the Reverse Manual 5-05, Property Management to require the servicer to request cancellation of Fannie Mae’s mortgagee interest in the existing hazard insurance policy and removal of its name from the policy if the insurance carrier is not willing to cancel the policy.
The servicer must implement this policy change immediately.
The servicer should contact its Reverse Mortgage Loan Servicing Representative in Fannie Mae’s Credit
Portfolio Management’s Servicer Support Center at 1-888-FANNIE5 (1-888-326-6435) with any questions regarding this Announcement.
Credit Portfolio Management
Source: Fannie Mae