Fannie Mae issued Lender Letter LL-2026-03, updating Fannie Mae’s requirements related to property insurance for 1- to 4- Unit Properties, annual insurance reminder, and lender-placed insurance. Per the Lender Letter, Fannie Mae:
- Updated requirements for monitoring property insurance policies on 1- to 4- unit properties dependent upon on whether or not whether the insurance policy obtained was a new or renewal policy;
- Updated annual insurance reminders by requiring servicers to:
- Remind the borrowers, annually, of the borrower’s responsibility to maintain insurance on the mortgaged premises and recommend to the borrower that the borrower contact their insurance provider to review their coverage;
- Provide the annual insurance reminder to the borrower using 1 of the following communication methods:
- In any existing borrower communication; or
- Referring the borrower to applicable borrower-facing insurance information on Fannie Mae’s or the servicer’s website; and
- Deliver the annual insurance reminder via any method as permitted by applicable law; and
- Modified lender-placed property insurance coverage requirements by requiring the servicer to obtain lender-placed insurance in response to notification that coverage is being cancelled, non-renewed, or has lapsed.
All revisions are effective January 1, 2027 (servicers, however, are encouraged to implement these changes immediately).
Click to view the Fannie Mae Lender Letter LL-2026-03: https://www.tenaco.com/wp-content/uploads/2026/03/Fannie-Mae-Lender-Letter-LL-2026-03-03-18-26.pdf
