B7-3-08, Mortgagee Clause, Named Insured, and Notice of Cancellation Requirements (12/14/2022)

The following requirements apply to individual property and flood insurance policies maintained by the borrower and do not apply to master property and flood insurance policies for project developments.

Fannie Mae must not be named in the mortgagee clause unless the coverage or its interest would be impaired by Fannie Mae not being named. If Fannie Mae is named, the clause must read: "Fannie Mae, in care of (insert servicer's name and address here)." This ensures that all matters related to the applicable insurance policy are referred directly to the servicer and not to Fannie Mae.

When Fannie Mae is not named in the mortgagee clause, the lender's name, followed by the phrase "its successors and/or assigns," and mailing address must be shown as the mortgagee. If the lender is not the servicer, the servicer's name, followed by "its successors and/or assigns," and mailing address must be specified. In all cases, the insurer must be instructed to send all correspondence, policies, and bills to the servicer (or to both the first and second mortgage servicers).

If the mortgage is registered with MERS and is originated naming MERS as the original mortgagee of record, MERS must not be named as mortgagee or loss payee on any property insurance policy. The mortgagee clause must name the servicer (unless Fannie Mae must be named because the coverage or its interest would be impaired as mentioned above).

The following table provides additional requirements for mortgagee clauses.

The following table provides the requirements for the named insured on property and flood insurance policies.

The following requirements apply to individual property insurance policies maintained by the borrower and do not apply to master property insurance policies for project developments.

The following table provides the requirements for notice of cancellation on property insurance policies.