Are your clients ready for GSE insurance requirement reviews?

Producers Careers Specialty Solutions Canada

News From the Vault

January 10, 2024

It’s that time of year again – the Federal Home Loan Bank (FHLB) and Government Sponsored Entities (GSEs) are reviewing their lending partners to make sure they meet their requirements, including adequate insurance. We’re seeing more detailed reviews this year, with some lenders scrambling to meet the insurance requirements or risk losing their certification.

GSEs include the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Government National Mortgage Association (Ginnie Mae); these are quasi-governmental privately held agencies established by congress, who provide loan guarantees to lenders, allowing lenders more flexibility in granting loans. Lending partners must comply with certain requirements and procedures to participate in these programs.

At Intact Financial Services, we’re here to help make sure your clients have the proper coverage. Our Mortgage Coverage Program (MCP) includes the coverages required by such entities, and we can help agents and lenders with coverage selections, additional insured requirements and limits.

To learn more, contact Betsy Good at egood@intactinsurance.com or 781-332-8357. Be sure to visit our website, which includes applications, coverage and risk management information and more!

This article is provided for general informational purposes only and does not constitute and is not intended to take the place of legal or risk management advice. Readers should consult their own counsel or other representatives for any such advice. Any and all third-party websites or sources referred to herein are for informational purposes only and are not affiliated with or endorsed by Intact Insurance Group USA LLC (“Intact”). Intact hereby disclaims any and all liability arising out of the information contained herein.

Intact Insurance Specialty Solutions is the marketing brand for the insurance company subsidiaries of Intact Insurance Group USA LLC. Coverages may be underwritten by one of the following insurance companies: Atlantic Specialty Insurance Company, a New York insurer; Homeland Insurance Company of New York, a New York insurer; Homeland Insurance Company of Delaware, a Delaware insurer; OBI America Insurance Company, a Pennsylvania insurer; OBI National Insurance Company, a Pennsylvania insurer; or The Guarantee Company of North America USA, a Michigan insurer. Each of these insurers maintains its principal place of business at 605 Highway 169 N, Plymouth, MN 55441, except The Guarantee Company of North America USA, which is located at One Towne Square, Southfield, MI 48076. This material is intended as a general description of certain types of insurance coverages and services. Coverages and availability vary by state; exclusions and deductibles may apply. Please refer to your insurance policy or consult with your independent insurance advisor for information about coverages, terms and conditions. Some coverage may be written by a surplus lines insurer through a licensed surplus lines broker. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.