Compliance Review

With each renewal, but at least annually, the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:

• complete an insurance compliance checklist to review the adequacy of the Borrower’sBorrower’sPerson who is the obligor per the Note. insurance coverage and ensure compliance with:
  • Part II, Chapter 5: Property and Liability Insurance;
  • all Fannie Mae-approved modifications; and
  • the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ;
• confirm the insurance carrier’s rating per Part V, Chapter 4: Asset Management: Loan Document Administration, Section 413.01E: Ratings; and
• retain in the Servicing FileServicing FileYour file for each Mortgage Loan serviced. the:
  • checklist;
  • evidence of the insurance carrier’s rating; and
  • if terrorism insurance is required, the analysis when annually confirming insurance compliance.

For an unrated Risk Retention GroupRisk Retention GroupState-chartered insurance company created by the 1986 federal Liability Risk Retention Act, insuring commercial businesses and government entities against liability risks. or Captive InsurerCaptive InsurerInsurance company wholly owned and controlled by its insureds, whose primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits. , the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must also comply with Part II, Chapter 5: Property and Liability Insurance, Section 501.01C: Risk Retention Groups and Captive Insurance.