source:
  type: guide
  id: fnma-svc-b-2-02
  authority: Fannie Mae Servicing Guide B-2-02 — Property Insurance Requirements for
    One- to Four-Unit Properties
  description: Fannie Mae Servicing Guide B-2-02 — Property Insurance Requirements
    for One- to Four-Unit Properties.
  coverage_tier: operative
obligations:
- id: fnma-svc-b-2-02-full
  canonical_id: fnma-svc-b-2-02-full
  section: Fannie Mae Servicing Guide B-2-02 — Property Insurance Requirements for
    One- to Four-Unit Properties
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide B-2-02 — Property Insurance Requirements
      for One- to Four-Unit Properties
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: 'B-2-02, Property Insurance Requirements for One- to Four-Unit
      Properties (12/21/2022) Introduction This topic contains the following: Overview
      Determining the Required Coverage Amount for Second Lien Mortgage Loans Mortgagee
      Clause Requirements for Second Lien Mortgage Loans Overview This topic describes
      additional requirements only applicable to servicers. Refer to Selling Guide
      B7-3-02, Property Insurance Requirements for One- to Four-Unit Properties for
      property insurance requirements for mortgage loans secured by a one- to four-unit
      property, including coverage requirements, determining the required coverage
      amount for ﬁrst lien mortgage loans, and deductible requirements. Published
      May 13, 2026 172 Refer to Selling Guide B7-3-08, Mortgagee Clause, Named Insured,
      and Notice of Cancellation Requirements for the applicable requirements for
      mortgage loans secured by a one- to four-unit property. Determining the Required
      Coverage Amount for Second Lien Mortgage Loans When the existing coverage for
      a property that secures a second lien mortgage does not provide coverage equal
      to the lesser of 100% of the replacement cost value of the property improvements
      or the combined unpaid principal balance of the ﬁrst-lien and second-lien mortgages
      (as long as that equals at least 80% of the replacement cost value of the improvements),
      the servicer must require the borrower to obtain appropriate endorsements to
      bring the coverage in line with Fannie Mae''s requirements. A copy of any endorsements
      should be sent to the ﬁrst-lien mortgage servicer. Mortgagee Clause Requirements
      for Second Lien Mortgage Loans For a second lien mortgage loan, the mortgagee
      clause in the property insurance policy for the ﬁrst lien mortgage loan must
      be amended to recognize the second lien mortgage loan and to clearly set out
      Fannie Mae''s interest in the policy coverage. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Announcements Issue Date Announcement SVC-2022-08 December
      21, 2022 Announcement SVC-2021-09 December 8, 2021'
  judgment: false
