source:
  type: guide
  id: fnma-sel-b7-3-08
  authority: Fannie Mae Selling Guide B7-3-08 — Mortgagee Clause, Named Insured, and
    Notice of Cancellation Requirements
  description: Fannie Mae Selling Guide B7-3-08 — Mortgagee Clause, Named Insured,
    and Notice of Cancellation Requirements.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-3-08-full
  canonical_id: fnma-sel-b7-3-08-full
  section: Fannie Mae Selling Guide B7-3-08 — Mortgagee Clause, Named Insured, and
    Notice of Cancellation Requirements
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-3-08 — Mortgagee Clause, Named Insured,
      and Notice of Cancellation Requirements
    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: 'B7-3-08, Mortgagee Clause, Named Insured, and Notice of Cancellation
      Requirements (12/14/2022) Introduction This topic contains information on the
      mortgagee clause, named insured, and notice of cancellation requirements. Mortgagee
      Clause for Property and Flood Insurance Named Insured for Property and Flood
      Insurance Notice of Cancellation for Property Insurance Mortgagee Clause for
      Property and Flood Insurance The following requirements apply to individual
      property and ﬂood insurance policies maintained by the borrower and do not apply
      to master property and ﬂood insurance policies for project developments. Fannie
      Mae must not be named in the mortgagee clause unless the coverage or its interest
      would be impaired by Fannie Mae not being named. If Fannie Mae is named, the
      clause must read: "Fannie Mae, in care of (insert servicer''s name and address
      here)." This ensures that all matters related to the applicable insurance policy
      are referred directly to the servicer and not to Fannie Mae. When Fannie Mae
      is not named in the mortgagee clause, the lender''s name, followed by the phrase
      "its successors and/or assigns," and mailing address must be shown as the mortgagee.
      If the lender is not the servicer, the servicer''s name, followed by "its successors
      and/or assigns," and mailing address must be speciﬁed. In all cases, the insurer
      must be instructed to send all correspondence, policies, and bills to the servicer
      (or to both the ﬁrst and second mortgage servicers). If the mortgage is registered
      with MERS and is originated naming MERS as the original mortgagee of record,
      MERS must not be named as mortgagee or loss payee on any property insurance
      policy. The mortgagee clause must name the servicer (unless Fannie Mae must
      be named because the coverage or its interest would be impaired as mentioned
      above). The following table provides additional requirements for mortgagee clauses.
      Property Type Mortgagee Clause Requirements One- to four-unit property The applicable
      insurance policy must include (or have attached) a "standard" or "union" mortgagee
      clause (without contribution) in the form customarily used in the area in which
      the property is located. A loss payable clause in lieu of a mortgagee clause
      is not acceptable. Published May 6, 2026 883 Property Type Mortgagee Clause
      Requirements Unit in a project development If a unit owner or shareholder maintains
      an individual property insurance policy (as indicated by the project''s legal
      documents) or if an individual property insurance policy is required in accordance
      with Determining if a Master Property Insurance Policy is Required in B7-3-03,
      Master Property Insurance Requirements for Project Developments for interior
      coverage, it must include the standard mortgagee clause as deﬁned above. If
      an individual ﬂood insurance policy is required in accordance with Requirements
      for Project Developments in B7-3-06, Flood Insurance Requirements for All Property
      Types, it must include the standard mortgagee clause as deﬁned above. A mortgagee
      clause naming Fannie Mae, the lender, or the servicer is not required for a
      master property insurance policy, an NFIP RCBAP, or equivalent master ﬂood insurance
      policy issued by a private insurer. Named Insured for Property and Flood Insurance
      The following table provides the requirements for the named insured on property
      and ﬂood insurance policies. Property Type Requirement for Named Insured One-
      to four- unit properties The individual property or ﬂood insurance policy must
      name all persons holding title to the subject property as named insured to ensure
      the borrower(s) has full rights to the policy and Fannie Mae''s interest or
      ability to receive beneﬁts is not impaired. Individual units in a project development
      Condo projects The master property or ﬂood insurance policy must designate the
      HOA as the named insured. If the condo''s legal documents permit it, the master
      property or ﬂood insurance policy can specify an authorized representative of
      the HOA, including its insurance trustee, as the named insured. PUD projects
      The master property or ﬂood insurance policy must designate the HOA as the named
      insured. Co-op projects The master property or ﬂood insurance policy must designate
      the co-op corporation as the named insured. Published May 6, 2026 884 Notice
      of Cancellation for Property Insurance The following requirements apply to individual
      property insurance policies maintained by the borrower and do not apply to master
      property insurance policies for project developments. The following table provides
      the requirements for notice of cancellation on property insurance policies.
      Project Type Requirement for Notice of Cancellation One- to four-unit properties
      The property insurance policy must provide for written notice to the named insured
      and mortgagee(s) before the insurer can cancel the policy. Individual units
      in a project development 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 Chapter B7-4, Liability and Fidelity/Crime Insurance
      Requirements for Project Developments Introduction This chapter describes the
      requirements for liability and ﬁdelity/crime insurance for project developments.
      Published May 6, 2026 885'
  judgment: false
