501.02B

Aggregate Deductibles

Guidance

You may accept a Property and Liability policy that includes aggregate deductibles.  The aggregate deductible may be higher than the maximum deductible required per Part II, Chapter 5: Property and Liability Insurance, Section 501.02A: Minimum Coverage Amounts. 

Requirements

If you accept a Property and Liability policy that includes aggregate deductibles, you must:

  • confirm the aggregate deductible amount is fully funded and held by:
    • the BorrowerBorrowerPerson who is the obligor per the Note. in a segregated bank account; or
    • you in the Tax and InsuranceTax and InsuranceTaxes or assessments that may become a Lien on the Property and insurance premiums. escrow; and
  • require any claim checks to:
    • list you as payee c/o Fannie Mae; and
    • be considered insurance loss proceeds per the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .