source:
  type: guide
  id: fnma-sel-a3-5-01
  authority: Fannie Mae Selling Guide A3-5-01 — Fidelity Bond and Errors and Omissions
    Coverage Provisions
  description: Fannie Mae Selling Guide A3-5-01 — Fidelity Bond and Errors and Omissions
    Coverage Provisions.
  coverage_tier: operative
obligations:
- id: fnma-sel-a3-5-01-full
  canonical_id: fnma-sel-a3-5-01-full
  section: Fannie Mae Selling Guide A3-5-01 — Fidelity Bond and Errors and Omissions
    Coverage Provisions
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide A3-5-01 — Fidelity Bond and Errors and Omissions
      Coverage Provisions
    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: 'A3-5-01, Fidelity Bond and Errors and Omissions Coverage Provisions
      (07/25/2017) Introduction This topic contains information on ﬁdelity bond and
      errors and omissions insurance coverage provisions. Fidelity Bond and Errors
      and Omissions Coverage Provisions Fidelity Bond and Errors and Omissions Coverage
      Provisions A seller/servicer must have a blanket ﬁdelity bond and an errors
      and omissions insurance policy in eﬀect at all times in an amount suﬃcient to
      meet Fannie Mae’s minimum coverage requirements described in A3-5-02, Fidelity
      Bond Policy Requirements and A3-5-03, Errors and Omissions Policy Requirements.
      A seller/servicer that is a subsidiary of another institution may use its parent’s
      ﬁdelity bond and errors and Published May 6, 2026 128 omissions insurance policy
      as long as it is named as a joint insured under the bond or policy. However,
      if the parent’s deductible amount exceeds the maximum deductible that Fannie
      Mae allows as required in A3-5-02, Fidelity Bond Policy Requirements, the seller/servicer
      must obtain a ﬁdelity bond in its own name for an amount that is at least equal
      to the amount of the parent’s deductible, with a separate deductible amount
      that is no higher than the maximum amount Fannie Mae allows for the seller/servicer’s
      coverage. Fannie Mae will accept coverage underwritten by an insurer that is
      aﬃliated with Lloyd’s of London. Fannie Mae will consider the use of captive
      reinsurance arrangements on a case-by-case basis. Each ﬁdelity bond and errors
      and omissions insurance policy must include the following provisions: Fannie
      Mae is named as a “loss payee” on drafts the insurer issues to pay for covered
      losses incurred by Fannie Mae; Fannie Mae has the right to ﬁle a claim directly
      with the insurer if the seller/servicer fails to ﬁle a claim for a covered loss
      incurred by Fannie Mae when reasonably available; Fannie Mae will be notiﬁed
      at least 30 days before the insurer cancels, reduces, declines to renew, or
      imposes a restrictive modiﬁcation to the seller/servicer’s coverage for any
      reason other than a partial or full exhaustion of the insurer’s limit of liability
      under the policy; and a provision that the insurer will notify Fannie Mae within
      ten days after the insurer receives a seller/servicer’s request to cancel or
      reduce any coverage. The seller/servicer must provide Fannie Mae a copy of its
      ﬁdelity bond or errors and omissions insurance certiﬁcate within 30 days of
      Fannie Mae’s request. If the seller/servicer obtains an endorsement to the bond
      or policy or obtains additional coverage, it should also provide Fannie Mae
      a copy of the endorsement or a description of the additional coverage, unless
      the information can be summarized substantively on the insurance certiﬁcate.
      The insurance certiﬁcate should indicate: the insurer’s name, the bond or policy
      number, the named insured, the type and amount of coverage (specifying whether
      the insurer’s liability limits are on an aggregate loss or per mortgage basis),
      the eﬀective date of the coverage, and the deductible amount. Recent Related
      Announcements There are no recently issued Announcements related to this topic.
      Published May 6, 2026 129'
  judgment: false
