Fannie Mae Gives Notices of Lender-Placed Insurance Changes

Fannie Mae Mortgage Servicing

On March 6, Fannie Mae notified servicers that it will soon change its Lender-Placed Insurance (LPI) requirements. As reported by several media outlets, Fannie Mae has asked insurance companies to compete for Fannie Mae LPI business. Through the proposal Fannie Mae wants to ensure that insurance costs are significantly reduced. It plans to issue new policy guidelines regarding (i) when and how to procure LPI, and (ii) allowed reimbursable costs associated with LPI.