Payment of Premium
Premiums for all required insurance policies must either be:
- paid in full annually; or
- payable in installments, for which you have receipts confirming timely payment.
Premium financing is permitted 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. If the BorrowerBorrowerPerson who is the obligor under the Note. finances premiums, you must review a copy of the financing agreement and confirm that timely payment of each premium has been made.
You should attempt to reinstate the annual payment of premiums at renewal of any policy.
Any financing agreement should include a requirement that you receive a notice of cancellation for any nonpayment of premium.
For Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents or a mortgage debt obligation with a Fannie Mae credit enhancement. where no insurance escrows are being collected, you must obtain evidence annually that all policies have been paid in full.
If the BorrowerBorrowerPerson who is the obligor under the Note. finances premiums, you must retain a copy of the financing agreement in your Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. . You must also keep receipts confirming timely payments.