Fannie Mae Seeks To Change Force-Placed Insurance Policy

11071_fanniemae Fannie Mae Seeks To Change Force-Placed Insurance Policy Fannie Mae has informed its lenders that it will seek to change its lender-placed insurance requirements.

According to a Reuters news report, Fannie Mae's proposed policy change, if enacted, would end the force-placed insurance practice that requires borrowers to buy insurance as a condition for obtaining or maintaining a mortgage. Fannie Mae, in a bulletin to its lenders, argues that changing the policy will reduce costs for homeowners.

Furthermore, Fannie Mae also notified its servicers that it plans to issue new guidelines on how they will be able to obtain force-placed policies and what policy costs will be considered reimbursable.

‘Our goal is to reduce costs for Fannie Mae and thereby taxpayers, and to reduce a barrier for homeowners becoming current on their loans,’ says Andrew Wilson, a spokesperson for Fannie Mae.

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