413.04A
Property and Liability Insurance
The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must immediately:
- obtain the required property and liability insurance, at the Borrower’sBorrower’sPerson who is the obligor per the Note.
expense, if:
- the BorrowerBorrowerPerson who is the obligor per the Note. fails to obtain acceptable insurance coverage; or
- per the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , even if the policy has not yet expired, the carrier is downgraded below the required ratings per Part V, Chapter 4: Asset Management: Loan Document Administration, Section 413.01E: Ratings; and
- notify Fannie Mae if the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. obtains the required property and liability insurance.
The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:
- have force place vendor, retroactive, and/or automatic coverage 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.
serviced with:
- deductibles no greater than those required per Part II, Chapter 5: Property and Liability Insurance;
- coverage provided by carriers complying with Part II, Chapter 5: Property and Liability Insurance;
- provide notice when coverage is force placed, including disclosing the coverage amount and deductibles; and
- adjust the T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. balance when the BorrowerBorrowerPerson who is the obligor per the Note. pays the force place insurance premiums.