Property Inspection Reimbursements Servicers should be aware that Freddie Mac issued a new temporary reimbursement process effective for any property inspections related to insurance loss settlements performed on and after September 1, 2018. Servicers must cease using the prior temporary reimbursement process announced in bll1814 Bulletin 2017-21 property-preservation-matrix svc1805 for inspections ordered in connection with insurance […]

Freddie Mac issued Bulletin 2018-13, announcing Single-Family Seller/Servicer Guide updates to Condominium Project deductible and insurance requirements. Effective immediately, if governing documents of a condominium homeowners association (HOA) call for a unit owner to insure their unit individually, in place of a master HOA policy, Freddie now allows for a condominium unit, including 2- to […]

In response to catastrophic events of Hurricane Florence, the South Carolina Department of Insurance issued an Emergency Insurance Regulation on September 14th (Emergency-Order-No-2018-EO-001), suspending certain provisions of the South Carolina Insurance Code, including those related to cancellation and non-renewal of insurance policies.   The Emergency Regulation is applicable to all lines of insurance that are subject […]

Fannie Mae recently issued Announcement SVC-2018-4, which among other changes updated the Servicing Guide sections related to reimbursements for advances made to pay flood and hazard insurance premiums after a foreclosure sale.  In general, Fannie Mae will reimburse such advances for both escrowed and non-escrowed loans, even if the advances were made prior to the […]

The question of whether the Department of Housing and Urban Development (HUD) accepts private flood insurance policies will finally be clarified. HUD has proposed to amend the Federal Housing Administration (FHA) rules to explicitly permit the use of private flood insurance on FHA loans in Special Flood Hazard Areas (SFHAs). The current FHA Regulations conflict with […]

Effective immediately, the Federal Housing Administration (FHA) released a Mortgagee Letter granting a 90-day conditional extension of the current foreclosure moratorium related to Hurricane Maria in specified impacted areas of Puerto Rico and the U.S. Virgin Islands. Through this publcation, HUD communicates guidance that further extends the current moratorium for those that satisfy the stated […]

The Pennsylvania Department of Banking and Securities recently added a new chapter concerning mortgage servicing to Title 10 of the Code. The goal of this legislative change, that becomes effective immediately, is to establish standards that emulate regulations published by the Consumer Financial Protection Bureau (CFPB). Included among the provisions are force-placed insurance notification requirements […]

NFIP Program and Flood Insurance Manual Changes FEMA has announced multiple amendments to the National Flood Insurance Program (NFIP) in efforts to offset potential future losses and reduce the amount of carried risk. Some notable actions by the agency include: Obtaining nearly $1.5 billion in reinsurance coverage Withdrawing ‘non-compete’ rule permitting insurers that sell NFIP-backed […]

FEMA has published a memorandum announcing changes to the NFIP Flood Insurance Manual that will become effective October 1, 2018. Examples of changes applicable to new business, renewals, endorsements, and cancellations include: Establishment of Cancellation Reason Code 26 for Duplicate Coverage FEMA created a reason code to allow cancellation of an NFIP policy when an […]

Proctor would also like to draw attention to recent changes Fannie Mae made to various sections of their website pertaining to condo projects. This material includes new and revised FAQs regarding Project Insurance Requirements and Project Standards, as well as Project Eligibility Review Service materials. To review these resources please visit the Condo, Co-op, Planned […]