501.01E
Insurance Carrier Rating
Requirements
Rating requirements do not apply to policies issued
- through State-sponsored insurance programs, or
- by insurers participating in NFIPNFIPProgram of flood insurance coverage and floodplain management administered under the National Flood Insurance Act. .
For a new policy, you must ensure the insurance carrier has an A.M. Best Company
- general policyholder rating of A- or better, and
- financial size category of VII or better.
Guidance
A new policy is one that is
- not already in force, and
- most common for an AcquisitionAcquisitionAny Purchase of either the: Property’s fee simple or leasehold interest via a deed transfer; or Controlling Interest in the Borrower. .
An existing policy is
- most common for a refinance, or
- when the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). is added to a Borrower'sBorrower'sPerson who is the obligor per the Note. already-in-place policy.