source:
  type: regulation
  id: fhlmc-8202.4
  authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
    (07/09/25)
  description: "Freddie Mac Guide §8202.4 (Evidence of insurance coverage requirements). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-8202.4-0
  canonical_id: fhlmc-8202.4-0
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: (07/09/25) This section contains information
    related to: ■ Required evidence of insurance coverage ■ Insurance policies for Condominiums Projects and Cooperative
    Projects, including master or blanket coverage (a) Required evidence of insurance coverage For each property
    securing …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(07/09/25) This section contains information related to: ■ Required evidence of insurance
      coverage ■ Insurance policies for Condominiums Projects and Cooperative Projects, including master or blanket
      coverage (a) Required evidence of insurance coverage For each property securing a Mortgage owned by Freddie
      Mac, the Servicer must maintain evidence of all required insurance coverages in one of the following forms:
      ■ An original policy (including the Planned Unit Development (PUD) or condominium homeowners association,
      Cooperative Corporation or fee simple landowner/lessor’s policy under which the required coverages may be
      provided in whole or in part) and applicable endorsements ■ A copy of the original policy and applicable endorsements
      if the copy meets the requirements of Chapter 3302 ■ A certificate, evidence or declarations of insurance
      showing at least the following information: ❑ Name insured and mortgagee (where applicable, PUD or condominium
      homeowners association, Cooperative Corporation, fee simple landowner/lessor and PUD, or Condominium Unit,
      Cooperative Unit or ground lease community mortgagee for all units in which the mortgagee has an insurable
      interest) ❑ Property address ❑ Type, amount and effective dates of coverage ❑ Deductible amount and coverage
      to which each such deductible applies'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-1
  canonical_id: fhlmc-8202.4-1
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: 202-7 ❑ Any endorsement or optional coverage
    obtained and made part of the original policy ❑ Insurer’s agreement to provide at least 10 days’ notice to the
    mortgagee (including any applicable PUD or Condominium Unit or ground lease community leasehold mortgagee) before
    any reduct…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '202-7 ❑ Any endorsement or optional coverage obtained and made part of the original policy
      ❑ Insurer’s agreement to provide at least 10 days’ notice to the mortgagee (including any applicable PUD or
      Condominium Unit or ground lease community leasehold mortgagee) before any reduction in coverage or cancelation
      of the policy; or for Cooperative Projects, 30 days’ notice to the mortgagee before cancelation ❑ Signature
      of an authorized representative of the insurer, if required by law The Servicer must maintain a specimen of
      each policy and endorsement for which a certificate, evidence or declarations of insurance is maintained in
      lieu of the policy and endorsement. If the Servicer documents and tracks the master or blanket condominium
      homeowners association or Cooperative Corporation insurance policy maintained by a condominium homeowners
      association or Cooperative Corporation and can cross-reference to such policy each Condominium Unit Mortgage
      or Cooperative Share Loan the Servicer services for Freddie Mac in the Condominium Project or Cooperative
      Project that is covered by such policy, the Servicer need not maintain and track a separate insurance certificate
      for each such Condominium Unit Mortgage or Cooperative Share Loan. (b) Insurance policies for Condominium
      Projects and Cooperative Projects, including master or blanket coverage If the Servicer is unable to obtain
      evidence of insurance for a Borrower’s unit in a Condominium Project, Cooperative Project or a PUD insured
      under a master or blanket policy, one of the following insurance coverages obtained by the Servicer will meet
      the evidence of insurance requirements for the Borrower’s unit: ■ A blanket insurance policy carried by the
      Servicer that provides unit owner coverages as well as loss assessment coverage in the event of an uninsured
      loss for all Freddie Mac Condominium Unit Mortgages and Mortgages secured by units in a PUD and, if permitted
      by the Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer ■ An agreement with an
      insurer to issue an insurance policy that provides unit owner coverage as well as loss assessment coverage
      in the event of an uninsured loss for all Freddie Mac Condominium Unit Mortgages, Mortgages secured by units
      in a PUD and, if permitted by the Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer
      The blanket insurance policy or an agreement with an insurer to provide unit owner coverage as well as loss
      assessment coverage must meet the following requirements: ■ Be underwritten by an insurer with a current rating
      meeting the requirements outlined in Section 4703.1'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-2
  canonical_id: fhlmc-8202.4-2
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: 202-8 ■ Provide coverage for the Servicer and/or
    Freddie Mac ■ Provide for at least 180 days’ written notice to the Servicer and, if applicable, Freddie Mac
    before canceling or terminating the coverage ■ Be approved by any regulatory authority to which the Servicer
    is subject, if…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '202-8 ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide for at least 180 days’
      written notice to the Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage
      ■ Be approved by any regulatory authority to which the Servicer is subject, if such approval is required The
      Servicer must carry Mortgage impairment or mortgagee interest insurance if it elects not to maintain the documentation
      described above. The Mortgage impairment or mortgagee interest policy must meet the following requirements:
      ■ Be underwritten by an insurer with a current rating meeting the requirements outlined in Section 4703.1
      ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide coverage in scope and amounts at least equal
      to those required under Sections 2101.5 and 2101.8 ■ Provide for at least 180 days’ written notice to the
      Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage ■ Be approved by any
      regulatory authority to which the Servicer is subject, if such approval is required Having a blanket insurance
      policy providing unit owners coverage, an agreement with an insurer to provide unit owners coverage, Mortgage
      impairment or mortgagee interest policy does not relieve the Servicer of any of its Servicing obligations
      under the Purchase Documents, including the obligations to demonstrate to Freddie Mac that all the minimum
      insurance coverages required in Chapter 4703 and any other Purchase Document on a property securing a Mortgage
      serviced for Freddie Mac are indeed in force and to take all remedial actions required in this Chapter 8202
      and any other Purchase Document when any such coverage is not in force. In addition to all other remedies
      of Freddie Mac provided for in the Purchase Documents, the Servicer will indemnify Freddie Mac for any loss
      Freddie Mac sustains due to the Servicer’s failure to verify that the required insurance is in force on the
      Mortgaged Premises. The Servicer’s obligation shall in no way be limited to the amount of coverage in force
      under a Mortgage impairment or mortgagee interest policy.'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-3
  canonical_id: fhlmc-8202.4-3
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: Evidence of insurance coverage requirements
    (Future effective date 01/01/27) This section contains information related to: ■ Required evidence of insurance
    coverage ■ Insurance policies for Condominiums Projects and Cooperative Projects, including master or blanket
    coverage (a) R…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Evidence of insurance coverage requirements (Future effective date 01/01/27) This section
      contains information related to: ■ Required evidence of insurance coverage ■ Insurance policies for Condominiums
      Projects and Cooperative Projects, including master or blanket coverage (a) Required evidence of insurance
      coverage For each property securing a Mortgage owned by Freddie Mac, the Servicer must maintain evidence of
      all required insurance coverages in one of the following forms: ■ An original policy (including the Planned
      Unit Development (PUD) or condominium homeowners association, Cooperative Corporation or fee simple landowner/lessor’s
      policy under which the required coverages may be provided in whole or in part) and applicable endorsements
      ■ A copy of the original policy and applicable endorsements if the copy meets the requirements of Chapter
      3302 ■ A certificate, evidence or declarations of insurance showing at least the following information: ❑
      Name insured and mortgagee (where applicable, PUD or condominium homeowners association, Cooperative Corporation,
      fee simple landowner/lessor and PUD, or Condominium Unit, Cooperative Unit or ground lease community mortgagee
      for all units in which the mortgagee has an insurable interest) ❑ Property address ❑ Type, amount and effective
      dates of coverage ❑ Deductible amount and coverage to which each such deductible applies ❑ Any endorsement
      or optional coverage obtained and made part of the original policy ❑ Insurer’s agreement to provide at least
      10 days’ notice to the mortgagee (including any applicable PUD or Condominium Unit or ground lease community
      leasehold mortgagee) before any reduction in coverage or cancelation of the policy; or for Cooperative Projects,
      30 days’ notice to the mortgagee before cancelation ❑ Signature of an authorized representative of the insurer,
      if required by law'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-4
  canonical_id: fhlmc-8202.4-4
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: 202-10 ■ Electronic data files that provide
    sufficient information to determine if a policy meets the minimum requirements outlined in Chapter 4703 The
    Servicer must maintain a specimen of each policy and endorsement for which a certificate, evidence or declarations
    of insurance …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '202-10 ■ Electronic data files that provide sufficient information to determine if a policy
      meets the minimum requirements outlined in Chapter 4703 The Servicer must maintain a specimen of each policy
      and endorsement for which a certificate, evidence or declarations of insurance is maintained in lieu of the
      policy and endorsement. Servicers that rely on electronic data files to determine if a policy meets the minimum
      requirements outlined in Chapter 4703 must have reasonable procedures in place to mitigate risks associated
      with not maintaining a specimen of each policy and endorsement, certificate, evidence or declarations of insurance.
      Servicers must provide legible hard copies of the complete insurance policies and proof of premium payments
      to Freddie Mac upon request. If the Servicer documents and tracks the master or blanket condominium homeowners
      association or Cooperative Corporation insurance policy maintained by a condominium homeowners association
      or Cooperative Corporation and can cross-reference to such policy each Condominium Unit Mortgage or Cooperative
      Share Loan the Servicer services for Freddie Mac in the Condominium Project or Cooperative Project that is
      covered by such policy, the Servicer need not maintain and track a separate insurance certificate for each
      such Condominium Unit Mortgage or Cooperative Share Loan. (b) Insurance policies for Condominium Projects
      and Cooperative Projects, including master or blanket coverage If the Servicer is unable to obtain evidence
      of insurance for a Borrower’s unit in a Condominium Project, Cooperative Project or a PUD insured under a
      master or blanket policy, one of the following insurance coverages obtained by the Servicer will meet the
      evidence of insurance requirements for the Borrower’s unit: ■ A blanket insurance policy carried by the Servicer
      that provides unit owner coverages as well as loss assessment coverage in the event of an uninsured loss for
      all Freddie Mac Condominium Unit Mortgages and Mortgages secured by units in a PUD and, if permitted by the
      Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer ■ An agreement with an insurer
      to issue an insurance policy that provides unit owner coverage as well as loss assessment coverage in the
      event of an uninsured loss for all Freddie Mac Condominium Unit Mortgages, Mortgages secured by units in a
      PUD and, if permitted by the Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer
      The blanket insurance policy or an agreement with an insurer to provide unit owner coverage as well as loss
      assessment coverage must meet the following requirements:'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-5
  canonical_id: fhlmc-8202.4-5
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: 202-11 ■ Be underwritten by an insurer with
    a current rating meeting the requirements outlined in Section 4703.1 ■ Provide coverage for the Servicer and/or
    Freddie Mac ■ Provide for at least 180 days’ written notice to the Servicer and, if applicable, Freddie Mac
    before canceling…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '202-11 ■ Be underwritten by an insurer with a current rating meeting the requirements outlined
      in Section 4703.1 ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide for at least 180 days’
      written notice to the Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage
      ■ Be approved by any regulatory authority to which the Servicer is subject, if such approval is required The
      Servicer must carry Mortgage impairment or mortgagee interest insurance if it elects not to maintain the documentation
      described above. The Mortgage impairment or mortgagee interest policy must meet the following requirements:
      ■ Be underwritten by an insurer with a current rating meeting the requirements outlined in Section 4703.1
      ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide coverage in scope and amounts at least equal
      to those required under Sections 2101.5 and 2101.8 ■ Provide for at least 180 days’ written notice to the
      Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage ■ Be approved by any
      regulatory authority to which the Servicer is subject, if such approval is required Having a blanket insurance
      policy providing unit owners coverage, an agreement with an insurer to provide unit owners coverage, Mortgage
      impairment or mortgagee interest policy does not relieve the Servicer of any of its Servicing obligations
      under the Purchase Documents, including the obligations to demonstrate to Freddie Mac that all the minimum
      insurance coverages required in Chapter 4703 and any other Purchase Document on a property securing a Mortgage
      serviced for Freddie Mac are indeed in force and to take all remedial actions required in this Chapter 8202
      and any other Purchase Document when any such coverage is not in force. In addition to all other remedies
      of Freddie Mac provided for in the Purchase Documents, the Servicer will indemnify Freddie Mac for any loss
      Freddie Mac sustains due to the Servicer’s failure to verify that the required insurance is in force on the
      Mortgaged Premises. The Servicer’s obligation shall in no way be limited to the amount of coverage in force
      under a Mortgage impairment or mortgagee interest policy.'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-6
  canonical_id: fhlmc-8202.4-6
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: Servicer responsibilities to monitor insurance
    claims and disburse insurance loss proceeds (09/10/25) This section contains requirements related to: ■ Servicer
    responsibilities for insurance claims ■ Reporting damage to the Mortgaged Premises ■ Disbursing loss proceeds
    ■ Repair o…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Servicer responsibilities to monitor insurance claims and disburse insurance loss proceeds
      (09/10/25) This section contains requirements related to: ■ Servicer responsibilities for insurance claims
      ■ Reporting damage to the Mortgaged Premises ■ Disbursing loss proceeds ■ Repair or reconstruction of the
      Mortgaged Premises ■ Final inspection of the Mortgaged Premises (a) Servicer responsibilities for insurance
      claims Upon notification of loss or damage to the Mortgaged Premises, the Servicer must monitor and coordinate
      the claim process with the Borrower and the insurer. The Servicer must take appropriate action to: ■ Verify
      the extent of the loss or damage ■ Ensure judicious disbursement of insurance proceeds for the necessary repairs
      ■ Protect the priority of the Mortgage by obtaining, where necessary, waivers of materialman’s or mechanic’s
      liens ■ Document details concerning the loss or damage, completion of the repairs and disposition of the insurance
      proceeds in the Mortgage file ■ Prohibit payment of fees out of the insurance loss proceeds to any public
      adjuster or other third party retained by the Borrower to assist with the recovery of those proceeds unless
      agreed to by Freddie Mac in writing ■ Refer to Chapter 8403 for additional requirements on Abandoned Properties
      (as defined in Section 8403.1), distressed properties or properties that pose a Risk of Property Ownership'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-7
  canonical_id: fhlmc-8202.4-7
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: 202-13 (b) Reporting damage to the Mortgaged
    Premises The Servicer does not need to submit a report and related recommendations to Freddie Mac unless: ■
    The Mortgage is in foreclosure ■ The Mortgaged Premises is abandoned and/or has been acquired by the Servicer
    through foreclosu…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '202-13 (b) Reporting damage to the Mortgaged Premises The Servicer does not need to submit
      a report and related recommendations to Freddie Mac unless: ■ The Mortgage is in foreclosure ■ The Mortgaged
      Premises is abandoned and/or has been acquired by the Servicer through foreclosure or deed-in-lieu of foreclosure.
      (See Section 9603.1(d)(ii)) for remittance requirements for insurance loss settlements.) ■ The insured improvements
      have suffered a total or near total loss ■ The insured improvements cannot be rebuilt ■ The Servicer wishes
      to apply insurance proceeds to the Mortgage debt instead of repairing the property, or ■ Insurance proceeds
      exceed the amounts required to restore the property to its original condition If any of the above conditions
      exist, the Servicer must submit the recommendation along with the appropriate documentation to Freddie Mac
      (see Directory 5) within five Business Days of learning of the situation. (c) Disbursing loss proceeds If
      a Servicer receives an insurance claim check for contents or living expenses, the Servicer must release the
      insurance funds to the Borrower without delay. When the Mortgaged Premises has suffered a loss, the Servicer
      must follow the requirements in the below table for releasing proceeds: Requirements for releasing loss proceeds
      Insurance loss draft Mortgage current or less than 31 days delinquent at the time of loss Mortgage 31 or more
      days delinquent at the time of loss Initial loss draft The Servicer may release insurance proceeds up to the
      greater of: If the proceeds are less than or equal to $5,000, the Servicer may disburse in one payment.'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-8
  canonical_id: fhlmc-8202.4-8
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: 202-14 Requirements for releasing loss proceeds
    Insurance loss draft Mortgage current or less than 31 days delinquent at the time of loss Mortgage 31 or more
    days delinquent at the time of loss ■ $40,000 ■ 33% of insurance proceeds or ■ The amount by which the release
    funds excee…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '202-14 Requirements for releasing loss proceeds Insurance loss draft Mortgage current or less
      than 31 days delinquent at the time of loss Mortgage 31 or more days delinquent at the time of loss ■ $40,000
      ■ 33% of insurance proceeds or ■ The amount by which the release funds exceed the sum of the UPB, accrued
      interest and advances on the Mortgage If the proceeds are greater than $5,000, the Servicer may make an initial
      disbursement of 25% of the insurance proceeds but no more than the greater of: ■ $10,000 or ■ The amount by
      which the release funds exceed the sum of the UPB, accrued interest and advances on the Mortgage Additional
      loss drafts The Servicer may distribute remaining funds based on the repair plan reviewed and approved by
      the Servicer. The Servicer may distribute remaining funds in increments not to exceed 25% of the insurance
      loss proceeds. Inspections The Servicer must inspect repairs prior to release of any remaining funds. For
      Mortgages that were current or less than 31 days delinquent at the time of loss, the Servicer may use either
      physical/onsite inspections or remote inspections to confirm the progress or completion of repairs at the
      property. The Servicer may use Borrower-submitted photos and/or video, or conduct Servicer-directed video
      calls with the Borrower to document the progress or completion of repairs at the property if the Servicer
      can, when conducting such inspections: ■ Determine the documented repairs are from the location of the property
      ■ Authenticate when any Borrower-submitted photos or video were taken and that such photos or video were not
      altered in any way, and ■ Clearly identify the repairs that are being documented and confirm the repairs (a)
      were completed in accordance with the insurance adjuster’s itemized estimate and the repair plan, and (b)
      do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy
      permit'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-8202.4-9
  canonical_id: fhlmc-8202.4-9
  section: Freddie Mac Guide 8202.4
  description: '8202.4 Evidence of insurance coverage requirements: 202-15 Requirements for releasing loss proceeds
    Insurance loss draft Mortgage current or less than 31 days delinquent at the time of loss Mortgage 31 or more
    days delinquent at the time of loss For remote inspections conducted by video call with the Borrower, the Servicer
    must al…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §8202.4 — Evidence of insurance coverage requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '202-15 Requirements for releasing loss proceeds Insurance loss draft Mortgage current or less
      than 31 days delinquent at the time of loss Mortgage 31 or more days delinquent at the time of loss For remote
      inspections conducted by video call with the Borrower, the Servicer must also retain video or photo records
      of the call that clearly document the Servicer’s compliance with the above requirements. For Mortgages that
      are more than 31 days delinquent at the time of loss, Servicers must schedule physical inspections to confirm
      the progress or completion of repairs. Funds payable The Servicer may issue insurance proceeds payable only
      to the Borrower. A Servicer may unilaterally apply the insurance proceeds to the Mortgage’s unpaid balance
      only to the extent allowed by applicable law and the Security Instrument. The Borrower, however, may unilaterally
      decide to have the proceeds applied to the Mortgage’s unpaid balance. If repair or reconstruction of the residence
      is expected to take more than three months, insurance funds retained by the Servicer pending disbursement
      for such repair or reconstruction must be maintained in a federally insured account that pays interest to
      the Borrower. The Servicer may be named as loss payee on insurance drafts and must comply with any applicable
      law and, where applicable, any requirement of the FHA, VA, RHS or MI. (d) Repair or reconstruction of the
      Mortgaged Premises In overseeing the repair or reconstruction of damaged or destroyed residences, the Servicer
      should, to the extent applicable, practicable and required, ascertain that: ■ The contractor chosen by the
      Borrower to repair or reconstruct the residence is: ❑ Qualified and experienced to perform the types of work
      contracted ❑ Financially able to complete the repair or reconstruction within scheduled time frames ■ The
      plans and specifications for the work contracted:'
    drafter_attestation: Verbatim from Freddie Guide §8202.4 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
