source:
  type: guide
  id: fnma-svc-e-4.4-01
  authority: Fannie Mae Servicing Guide E-4.4-01 — Continuing or Canceling Property
    Insurance Coverage
  description: Fannie Mae Servicing Guide E-4.4-01 — Continuing or Canceling Property
    Insurance Coverage.
  coverage_tier: operative
obligations:
- id: fnma-svc-e-4.4-01-full
  canonical_id: fnma-svc-e-4.4-01-full
  section: Fannie Mae Servicing Guide E-4.4-01 — Continuing or Canceling Property
    Insurance Coverage
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide E-4.4-01 — Continuing or Canceling Property
      Insurance Coverage
    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: 'E-4.4-01, Continuing or Canceling Property Insurance Coverage
      (11/13/2019) Introduction This topic contains the following: Overview For Conventional
      Mortgage Loans For FHA Mortgage Loans For VA Mortgage Loans For RD Mortgage
      Loans Overview The servicer''s action regarding the continuation or cancellation
      of property insurance coverage following the foreclosure sale or acceptance
      of an executed Mortgage Release will depend upon the type of mortgage loan that
      was liquidated, and whether the property will be conveyed to the insurer or
      the guarantor. Any inquiries regarding the cancellation of property insurance
      should be addressed to Fannie Mae’s SF CPM division (see F-4-02, List of Contacts).
      Fannie Mae’s property recovery ﬁrms assume all responsibilities for ﬁling any
      necessary property insurance claims for losses identiﬁed post-foreclosure for
      conventional ﬁrst lien mortgage loans, conventional second lien mortgage loans
      for which Fannie Mae either had an ownership interest in the ﬁrst lien mortgage
      loan or paid oﬀ the ﬁrst lien mortgage loan in connection with the foreclosure
      of the second lien mortgage loan, FHA or VA mortgage loans that cannot be conveyed
      to the insurer or guarantor, and special servicing option RD guaranteed mortgage
      loans. The property recovery ﬁrm may contact the servicer to obtain information
      about any applicable property insurance policy and carrier(s) and any recent
      property inspections completed by the servicer. The servicer must provide all
      requested information or documentation to the property recovery ﬁrm within three
      business days. For Conventional Mortgage Loans The following table describes
      the servicer''s responsibilities related to the cancellation of property insurance
      Published May 13, 2026 494 coverage for all ﬁrst and second lien conventional
      mortgage loans when the property is acquired. ✓ Within 14 days after the foreclosure
      sale or acceptance of an executed Mortgage Release, the servicer must... Ask
      the property insurance carrier to cancel the policy and, unless prohibited by
      the policy or applicable law, send it any unearned premium refund. Request cancellation
      of Fannie Mae''s mortgagee interest in the policy and removal of its name from
      the policy if the insurance carrier is not willing to cancel the policy because
      Fannie Mae is not the named insured. For information regarding the servicer’s
      responsibilities prior to liquidation for maintaining a required property insurance
      coverage and addressing insurable damage or potential damage due to a disaster
      event, see B-2, Property Insurance Requirements, B-5-01, Insured Loss Events,
      and D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower.
      For FHA Mortgage Loans The following table describes servicer requirements for
      FHA mortgage loans that will be conveyed to HUD. ✓ The servicer must... Obtain
      an endorsement to the property insurance policy to reﬂect Fannie Mae''s interests
      immediately following the foreclosure sale. Cancel the insurance coverage on
      the date the deed to HUD is ﬁled for record and include the amount of the refund,
      or an estimated refund amount if the refund has not been received, as a deduction
      on the FHA MI claim. If the property cannot be conveyed to HUD, the servicer
      must instead adhere to the policy described for conventional mortgage loans
      in For Conventional Mortgage Loans earlier in this topic. When the servicer
      receives the refund of the unearned property insurance premium from the insurer,
      it must immediately remit the funds to Fannie Mae as a “special remittance.”
      However, if Fannie Mae has not reimbursed the servicer for all of its outstanding
      foreclosure expenses, the servicer may keep the property insurance premium refund
      and show it as a credit on the request for expense reimbursement that it submits
      to request reimbursement of its outstanding expenses for the mortgage loan.
      Note: This does not pertain to property insurance proceeds, but only premium
      refunds. For VA Mortgage Loans Published May 13, 2026 495 For VA mortgage loans
      that will be conveyed to VA, the servicer must endorse the applicable property
      insurance policy over to VA immediately following the foreclosure sale. If the
      property cannot be conveyed to VA, the servicer must adhere to the policy for
      conventional mortgage loans in For Conventional Mortgage Loans earlier in this
      topic. For RD Mortgage Loans For modiﬁed special servicing option or regular
      servicing option RD mortgage loans, the servicer''s decision about canceling
      the property insurance policy or Fannie Mae''s mortgagee interest in it must
      be made in accordance with RD requirements. For special servicing option RD
      mortgage loans, the servicer must adhere to the policy for conventional mortgage
      loans in For Conventional Mortgage Loans earlier in this topic. Recent Related
      Announcements The table below provides references to recently issued Announcements
      that are related to this topic. Announcements Issue Date Announcement SVC-2019-07
      November 13, 2019 Announcement SVC-2019-02 April 10, 2019'
  judgment: false
