Fannie Mae SVC-2014-19 Updates to Property (Hazard) and Flood Insurance Losses and Insurance Claim Settlements
On October 17, Fannie Mae released Servicing Guide Announcement SVC-2014-19, subtitled Updates to Property (Hazard) and Flood Insurance Losses and Insurance Claim Settlements.
Servicing Guide Announcement SVC-2014-19
Updates to Property (Hazard) and Flood Insurance Losses and Insurance Claim Settlements
Fannie Mae’s Servicing Guide currently requires handling insurance losses based on the cause of the damages (disaster or non-disaster). With this Announcement, Fannie Mae is providing new guidance for handling insurance losses based on the mortgage loan status at the time the servicer receives notification of damages, regardless of the cause of the damage.
This Announcement supersedes and replaces the following sections of the Servicing Guide in their entirety:
- Part II, Chapter 5: Insurance Losses
- Part II, Section 501: Insurance Claim Settlement
- Part II, Section 501.01: Disposition of Insurance Proceeds Other Than for Natural Disasters
- Part II, Section 501.02: Report of Hazard Insurance Loss
- Part III, Section 1103: Insurance Claim Settlements
- Part III, Section 1103.01: Current Mortgage Loans
- Part III, Section 1103.02: Mortgage Loans 30 Days to Less Than 90 Days Delinquent or That Are Current Under the Terms of a Bankruptcy Plan
- Part III, Section 1103.03: Mortgage Loans 90 Days or More Delinquent, Mortgage Loans That Are Delinquent Under the Terms of a Bankruptcy Plan, and Mortgage Loans in Foreclosure
- Part III, Section 1103.04: Deposit of the Insurance Proceeds
The servicer is encouraged to implement the new policies in this Announcement immediately but must implement these new policies no later than February 1, 2015.
Please click here to view the announcement in its entirety.
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally.