source:
  type: guide
  id: fnma-sel-b7-3-07
  authority: Fannie Mae Selling Guide B7-3-07 — Evidence of Property Insurance
  description: Fannie Mae Selling Guide B7-3-07 — Evidence of Property Insurance.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-3-07-full
  canonical_id: fnma-sel-b7-3-07-full
  section: Fannie Mae Selling Guide B7-3-07 — Evidence of Property Insurance
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-3-07 — Evidence of Property Insurance
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B7-3-07, Evidence of Property Insurance (12/14/2022) Introduction
      This topic contains information on evidence of property insurance, including:
      Overview Certiﬁcates of Property Insurance Master Property Insurance Policies
      for Project Developments Electronic Data Files Overview The following requirements
      apply when documenting and retaining evidence of property insurance policies:
      The lender or servicer must verify the existence of a valid insurance policy
      that meets Fannie Mae''s requirements. Information related to the policy should
      be passed on to the servicer, when applicable. The lender or servicer must retain
      acceptable evidence of insurance for each required policy, which includes suﬃcient
      information about the insurance policy, the subject property, and the borrower
      to ensure compliance with Fannie Mae''s requirements for a ﬁrst mortgage, unless
      the lender or servicer is covered by a mortgage impairment or mortgagee interest
      insurance policy or uses other evidence of insurance that Fannie Mae considers
      acceptable. The servicer of a second mortgage must retain a copy of the insurance
      policy, any endorsements to it, and evidence of premium payments. The servicer
      must verify at least annually that any property insurance policy for a one-
      to four-unit property or a unit in a project development meets Fannie Mae''s
      requirements. Note: If a lender is unable to determine whether the applicable
      insurance policy meets Fannie Mae''s requirements, the associated loan is not
      eligible for purchase by Fannie Mae. Certiﬁcates of Property Insurance A lender
      or servicer may accept a certiﬁcate of property insurance in lieu of a complete
      property insurance policy if the certiﬁcate includes all of the information
      needed for the lender or servicer to determine whether the insurance meets Fannie
      Mae''s requirements. The certiﬁcate of property insurance must be signed by
      the insurer. Master Property Insurance Policies for Project Developments When
      required, the lender or servicer must obtain a copy of the current master property
      insurance policy or a certiﬁcate of property insurance showing that the subject
      unit is covered under the master property insurance policy. See Servicing Guide,
      B-2-03, Master Property Insurance Requirements for Project Developments, for
      additional servicer responsibilities related to evidence of master property
      insurance policies for project developments. Published May 6, 2026 881 Electronic
      Data Files Electronic data ﬁles are acceptable in lieu of hard copy insurance
      policies if all the requirements in the following table are met. ✓ Requirements
      for Electronic Data Files for Insurance Policies The data ﬁle must include suﬃcient
      information about the insurance policy, the subject property, and the borrower
      to ensure that the servicer is able to comply with Fannie Mae''s requirements
      for maintaining and monitoring property insurance, such as • reviewing the insurance
      policy terms, amount of coverage, and deductibles; • conﬁrming that the premiums
      have been paid; and • processing loss drafts. The lender''s or servicer''s errors
      and omissions insurance policy must acknowledge electronic data transfers and
      fully protect the lender or servicer and Fannie Mae against losses incurred
      as the result of erroneous data ﬁles or transfers. The insurer must provide
      the lender or servicer with written assurance that the data ﬁle is equivalent
      to a printed policy, typically through a detailed agreement between the two
      parties. The lender or servicer must have appropriate procedures in place to
      mitigate risks associated with not possessing an original hardcopy policy, which
      may include obtaining certiﬁcations from the insurer as to the accuracy of certain
      information that the servicer is required to verify. The lender or servicer
      must provide legible hard copies of the complete insurance policies and proof
      of premium payments if Fannie Mae requests them. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Announcements Issue Date Announcement SEL-2022-10 December
      14, 2022 Announcement SEL-2021-11 December 15, 2021 Published May 6, 2026 882'
  judgment: false
