© Fannie Mae Single Family Servicing Guide
Determining Minimum Coverage Amounts
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The servicer must name Fannie Mae in the mortgagee clause if coverage or Fannie Mae’s interest would be impaired by not being named. Otherwise, the mortgagee clause is based on the mortgagee of record and the mortgage loan type as described in the following tables.
| If the mortgagee is... | Then... |
|---|---|
Fannie Mae | the mortgagee clause must read “Fannie Mae, in care of [insert servicer’s name and address here].” |
the servicer | the servicer’s name, followed by the phrase “its successors and assigns,” must be shown as the mortgagee. |
MERS | the mortgagee clause must name the servicer unless Fannie Mae must be named because the coverage or its interest would be impaired by its not being named. |
| Type of Mortgage Loan | Mortgagee Clause Requirements |
|---|---|
First lien mortgage loan | The policy must include (or have attached) a “standard” or “union” mortgagee clause (without contribution) in the form customarily used in the area in which the property is located. |
Second lien mortgage loan | The mortgagee clause in the property insurance policy for the first lien mortgage loan must be amended to recognize the second lien mortgage loan and to clearly set out Fannie Mae’s interest in the policy coverage |
Related Announcements
The following table provides references to Announcements that are related to this topic.
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