A decision by Fannie Mae to implement new guidelines on forced-placed insurance is now being put on hold.
The government-controlled enterprise issued Servicing Guide Announcement SVC-2012-04 in March outlining a number of new guidelines when obtaining forced-placed insurance.
Fannie explained at the time that lender-placed insurance costs many borrowers significantly more than standard hazard policies, and the higher costs could make it more difficult for delinquent borrowers to bring their loans current.
The updated policy was supposed to be implemented by June 1.
But a servicing notice issued Wednesday indicated that the secondary lender is postponing the effective implementation date.
“In the near future, Fannie Mae will issue an updated announcement with a new effective date and provide additional guidance on lender-placed property insurance requirements,” the notice stated.
No reason was given for the decision to delay implementation.
Related:
Fannie Revises Guidelines on Forced-Placed Insurance
New guidelines on lender-placed insurance have been issued for servicers approved by the Federal National Mortgage Association.
