source:
  type: guide
  id: fnma-sel-b7-4-02
  authority: Fannie Mae Selling Guide B7-4-02 — Fidelity/Crime Insurance Requirements
    for Project Developments
  description: Fannie Mae Selling Guide B7-4-02 — Fidelity/Crime Insurance Requirements
    for Project Developments.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-4-02-full
  canonical_id: fnma-sel-b7-4-02-full
  section: Fannie Mae Selling Guide B7-4-02 — Fidelity/Crime Insurance Requirements
    for Project Developments
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-4-02 — Fidelity/Crime Insurance Requirements
      for Project Developments
    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: 'B7-4-02, Fidelity/Crime Insurance Requirements for Project Developments
      (12/14/2022) Introduction This topic contains information on ﬁdelity/crime insurance
      requirements, including: Determining if Fidelity/Crime Insurance is Required
      Coverage Requirements Determining the Required Coverage Amount Named Insured
      Determining if Fidelity/Crime Insurance is Required Fidelity/crime insurance
      is required for all condo and co-op projects, with the following exceptions:
      projects that qualify for a waiver of project review as described in B4-2.1-02,
      Waiver of Project Review, condo projects reviewed under the Limited Review method
      as described in B4-2.2-01, Limited Review Process, condo or co-op projects consisting
      of 20 units or less, or condo or co-op projects that would need ﬁdelity/crime
      insurance coverage of $5,000 or less (based on the calculations described in
      Determining the Required Coverage Amount). Coverage Requirements When required,
      the HOA or co-op corporation must have ﬁdelity/crime insurance coverage for
      the dishonest or fraudulent acts of anyone who either handles or is responsible
      for funds held or administered for the HOA or co- op corporation. Fidelity/crime
      insurance is required whether or not that individual receives compensation for
      services rendered. Accordingly, the HOA or co-op corporation ﬁdelity/crime insurance
      policy must include coverage for the acts of any management agent. Published
      May 6, 2026 887 A management agent that handles funds for the HOA or co-op corporation
      should additionally be covered by its own ﬁdelity/crime insurance policy, however,
      a ﬁdelity/crime insurance policy maintained by the management agent (with the
      management agent as the named insured) is not an acceptable alternative for
      a ﬁdelity/crime insurance policy in the HOA or co-op corporation''s name that
      provides coverage for the acts of all parties with access to their funds, including
      the management agent. Determining the Required Coverage Amount When ﬁdelity/crime
      insurance is required, the lender or servicer must review the project legal
      documents or other source acceptable to the lender or servicer to verify whether
      the HOA or co-op corporation and any associated management company adhere to
      one or more of the ﬁnancial controls listed below: Separate bank accounts are
      maintained for the working account and the reserve account, each with appropriate
      access controls, and the bank in which funds are deposited sends copies of the
      monthly bank statements directly to the HOA or co-op corporation. The management
      company maintains separate records and bank accounts for each HOA or co-op corporation
      that uses its services, and the management company does not have the authority
      to draw checks on, or transfer funds from, the reserve account of the HOA or
      co-op corporation. Two members of the Board of Directors must sign any checks
      written on the reserve account. The following table describes how to determine
      the minimum required amount of ﬁdelity/crime insurance. If the HOA or co-op
      corporation Then the ﬁdelity/crime insurance coverage amount must equal at least...
      adheres to one or more of the ﬁnancial controls above the sum of three months
      of assessments on all units in the project. does not adhere to one or more of
      the ﬁnancial controls above the maximum funds that are in the custody of the
      HOA or co-op corporation, or its management agent, at any time. Note: In states
      that have statutory ﬁdelity/crime insurance requirements, Fannie Mae accepts
      those requirements in place of its own. Named Insured The ﬁdelity/crime insurance
      policy must designate the HOA or co-op corporation as the named insured with
      premiums paid as a common expense by the HOA or co-op corporation. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Published May 6, 2026 888 Announcements Issue
      Date Announcement SEL-2022-10 December 14, 2022 Announcement SEL-2021-11 December
      15, 2021 Subpart B8, Closing: Legal Documents Introduction This subpart describes
      legal document requirements in connection with mortgage loans sold to Fannie
      Mae. Chapter B8-1, General Information on Legal Documents Introduction This
      chapter provides general information on Fannie Mae’s requirements for legal
      documents.'
  judgment: false
