501.01G

Payment of Premium

Requirements

You must:

  • ensure premiums for all required insurance policies are either:
    • paid in full annually; or
    • payable in installments, for which you have receipts confirming timely payment;
  • not provide premium financing to the Borrower BorrowerPerson who is the obligor per the Note. ; and
  • only permit third-party premium financing if:
    • the financing agreement:
      • has no negative impact on
        • you,
        • Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! , or
        • the Mortgage Loan Mortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 collateral; and
      • does not include any conditions that could prevent you or Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! from receiving the insurance proceeds; and
    • the Modifications to Multifamily Loan and Security Agreement (Financing of Insurance Premiums) ( Form 6272 ) was executed.

If the Borrower BorrowerPerson who is the obligor per the Note. finances premiums, you must

  • review the financing agreement,
  • confirm timely payment of each premium was made, and
  • retain in the Servicing file
    • the financing agreement, and
    • evidence of premium payments.