501.01G

Payment of Premium

Requirements

You must:

  • ensure premiums for all required insurance policies are either:
    • paid in full annually; or
    • payable in installments, for which you have receipts confirming timely payment;
  • not provide premium financing to the BorrowerBorrowerPerson who is the obligor per the Note. ; and
  • only permit third-party premium financing if:
    • the financing agreement:
      • has no negative impact on
        • you,
        • Fannie Mae, or
        • the Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. collateral; and
      • does not include any conditions that could prevent you or Fannie Mae from receiving the insurance proceeds; and
    • the Modifications to Multifamily Loan and Security Agreement (Financing of Insurance Premiums) (Form 6272) was executed.

If the BorrowerBorrowerPerson who is the obligor per the Note. finances premiums, you must

  • review the financing agreement,
  • confirm timely payment of each premium was made, and
  • retain in the Servicing file
    • the financing agreement, and
    • evidence of premium payments.