source:
  type: guide
  id: fnma-svc-b-3-01
  authority: Fannie Mae Servicing Guide B-3-01 — Flood Insurance Requirements Applicable
    to All Property Types
  description: Fannie Mae Servicing Guide B-3-01 — Flood Insurance Requirements Applicable
    to All Property Types.
  coverage_tier: operative
obligations:
- id: fnma-svc-b-3-01-full
  canonical_id: fnma-svc-b-3-01-full
  section: Fannie Mae Servicing Guide B-3-01 — Flood Insurance Requirements Applicable
    to All Property Types
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide B-3-01 — Flood Insurance Requirements Applicable
      to All Property Types
    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-3-01, Flood Insurance Requirements Applicable to All Property
      Types (02/14/2024) Introduction This topic contains the following: Overview
      Servicer Responsibilities Related to Flood Insurance Requirements When a Property’s
      Flood Zone Status Changes Determining the Required Coverage Amount for First
      Lien Mortgage Loans Determining the Required Coverage Amount for Second Lien
      Mortgage Loans Requirements During a National Flood Insurance Program Lapse
      Overview Refer to Selling Guide B7-3-06, Flood Insurance Requirements for All
      Property Types for general ﬂood insurance requirements. This topic describes
      additional requirements only applicable to servicers. Servicer Responsibilities
      Related to Flood Insurance The following table outlines the servicer’s responsibilities
      for the maintenance of ﬂood insurance. ✓ The servicer must... Ensure the property
      securing the mortgage loan is adequately protected by ﬂood insurance when required,
      with no lapses of coverage (see Requirements During a National Flood Insurance
      Program Lapse for servicing mortgage loans impacted by a lapse of the NFIP).
      Ensure the ﬂood insurance premiums are paid. See B-1-01, Administering an Escrow
      Account and Paying Expenses for additional information. Actively monitor all
      ﬂood maps and community status changes and take appropriate action as changes
      occur. If a property is remapped into an SFHA, see When a Property’s Flood Zone
      Status Changes for additional information. Provide evidence of ﬂood insurance
      coverage to Fannie Mae within 10 business days of the date of Fannie Mae’s request.
      Published May 13, 2026 176 ✓ The servicer must... Ensure appropriate coverage
      is in place upon completion of repairs, renovation, or construction for home
      renovation or energy improvement loans. See Selling Guide B7-3-05, Additional
      Insurance Requirements for additional information. Requirements When a Property’s
      Flood Zone Status Changes When a property is remapped into an SFHA, the servicer
      must take the action described in the following table. If the property is located
      in a... Then the servicer must... participating community under the NFIP obtain
      the required coverage within 120 days after the eﬀective date of the remapping
      even if the borrower refuses to obtain the required coverage or to pay a disputed
      premium. non-participating community under the NFIP work with the borrower to
      locate a private insurance carrier and obtain the required coverage within 120
      days after the eﬀective date of the remapping. The servicer must follow the
      procedures in General Expense Reimbursement Requirements in F-1-05, Expense
      Reimbursement for information related to ﬂood insurance premium reimbursement.
      When a property is remapped out of an SFHA, the servicer must not require ﬂood
      insurance. If the borrower provides a letter from FEMA stating the structure
      is no longer in an SFHA and requests that the ﬂood insurance be canceled, the
      servicer must cancel the ﬂood insurance, and maintain a copy of the letter from
      FEMA in the individual mortgage loan ﬁle. Determining the Required Coverage
      Amount for First Lien Mortgage Loans Refer to Selling Guide B7-3-06, Flood Insurance
      Requirements for All Property Types for determining the required coverage amount
      for ﬁrst lien mortgage loans. Determining the Required Coverage Amount for Second
      Lien Mortgage Loans If Fannie Mae does not have an interest in the ﬁrst lien
      mortgage loan and the property securing a second lien mortgage loan is not covered
      by a required ﬂood insurance policy because the holder of the ﬁrst lien mortgage
      loan did not require ﬂood insurance coverage, the servicer must require the
      borrower to obtain a ﬂood Published May 13, 2026 177 insurance policy with coverage
      in the amount of the lesser of the UPB of all property liens, or the maximum
      coverage available under the NFIP. Requirements During a National Flood Insurance
      Program Lapse Refer to Selling Guide B7-3-06, Flood Insurance Requirements for
      All Property Types for additional requirements that must also be met in the
      event of a lapse of the NFIP. The following table lists the servicer''s responsibilities
      for impacted mortgage loans during a lapse of the NFIP. ✓ The servicer must
      continue to... Collect ﬂood insurance premiums and remit payment to the appropriate
      insurance company when the NFIP has been reauthorized. Track properties securing
      mortgage loans for which a new policy, an increase in coverage, or renewal of
      an existing policy would have occurred during the lapse. Take all steps (as
      permitted by applicable law) necessary to facilitate the issuance of coverage
      once the lapse has ended. Recent Related Announcements The table below provides
      references to recently issued Announcements that are related to this topic.
      Announcements Issue Date Announcement SVC-2024-01 February 14, 2024 Announcement
      SVC-2022-08 December 21, 2022 Announcement SVC-2021-09 December 8, 2021 Chapter
      B-4, Additional Insurance Requirements Introduction This chapter describes requirements
      relating to additional insurance coverages. Published May 13, 2026 178'
  judgment: false
