source:
  type: guide
  id: fnma-sel-b7-2-03
  authority: Fannie Mae Selling Guide B7-2-03 — General Title Insurance Coverage
  description: Fannie Mae Selling Guide B7-2-03 — General Title Insurance Coverage.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-2-03-full
  canonical_id: fnma-sel-b7-2-03-full
  section: Fannie Mae Selling Guide B7-2-03 — General Title Insurance Coverage
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-2-03 — General Title Insurance Coverage
    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: 'B7-2-03, General Title Insurance Coverage (07/06/2022) Introduction
      This topic contains information on general title insurance coverage. Terms of
      Coverage Eﬀective Date of Coverage Amount of Coverage Published May 6, 2026
      845 Other Requirements Terms of Coverage The title insurance policy must ensure
      that the title is generally acceptable and that the mortgage constitutes a lien
      of the required priority on a fee simple or leasehold estate in the property.
      The title policy also must list all other liens and state that they are subordinate
      to Fannie Mae’s mortgage lien. Loan Origination Date Title Policy Requirements
      On or after January 1, 2024 The title policy must be written on one of the following
      forms: • the 2021 American Land Title Association (ALTA) Loan Policy; • an ALTA
      short form if it provides coverage equivalent to the 2021 ALTA Loan Policy and
      does not materially impair protection to Fannie Mae; • in states in which standard
      ALTA forms of coverage are, by law or regulation, not used, the state-promulgated
      standard or short form which provides same coverage as the equivalent ALTA form,
      provided that those forms do not materially impair protection to Fannie Mae.
      Prior to January 1, 2024 The title policy must be written on one of the following
      forms: • the 2006 American Land Title Association (ALTA) Loan Policy or 2021
      ALTA Loan Policy; • an ALTA short form if it provides coverage equivalent to
      either the 2006 ALTA Loan Policy or 2021 ALTA Loan Policy and does not materially
      impair protection to Fannie Mae; • in states in which standard ALTA forms of
      coverage are, by law or regulation, not used, the state-promulgated standard
      or short form which provides same coverage as the equivalent ALTA form, provided
      that those forms do not materially impair protection to Fannie Mae. Eﬀective
      Date of Coverage The eﬀective date of the title insurance coverage written on
      forms that do not provide the gap coverage included in the 2006 and 2021 ALTA
      policies may be no earlier than the later of the date of the ﬁnal disbursement
      of loan proceeds or the date the mortgage was recorded. Because the 2006 and
      2021 ALTA forms provide protection for the time between loan closing and recordation
      of the mortgage, policies written on those forms may be eﬀective as of loan
      closing. Published May 6, 2026 846 Amount of Coverage The amount of title insurance
      coverage must at least equal the original principal amount of the loan. Other
      Requirements If a mortgage is registered with MERS and is originated naming
      MERS as original mortgagee of record, solely as nominee for the lender named
      in the security instrument and the note, and the lender''s successors and assigns,
      then the "insured mortgage" covered by the title insurance policy must be identiﬁed
      in the title insurance policy as the security instrument given to MERS, solely
      as nominee for the lender and lender''s successors and assigns. However, under
      no circumstances may MERS be named as the insured of a title policy. The title
      insurance coverage must include an environmental protection lien endorsement
      (ALTA 8.1 Environmental Protection Lien Endorsement or equivalent state form
      that provides the required coverage). References are to the ALTA form of endorsement,
      but state forms may be used as described in Terms of Coverage. As an alternative
      to endorsements, the requisite protections may be incorporated into the policy.
      For loans originated prior to January 1, 2008, endorsement forms that meet Fannie
      Mae’s requirements at the time of origination are acceptable. Title policies
      may not include the creditors’ rights exclusion language that ALTA adopted in
      1990. Recent Related Announcements The table below provides references to recently
      issued Announcements that are related to this topic. Announcements Issue Date
      Announcement SEL-2022-06 July 06, 2022'
  judgment: false
