Federal National Mortgage Association
Announcement SVC-2026-05 – Servicing Guide Update
August 12, 2026
Summary
Fannie Mae's Servicing Guide update SVC-2026-05 incorporates the property insurance policy changes from Lender Letter LL-2026-03 into the Servicing Guide, adding servicer-specific requirements and aligning requirements for renovation and second lien loans. Servicers must implement the LL-2026-03 changes by Jan. 1, 2027, while minor edits to Chapter B-2 are effective immediately. No additional policy changes were made beyond the incorporation.
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Servicing Guide Announcement (SVC-2026-05)
The Servicing Guide has been updated to include changes to the following:
- Miscellaneous updates:
- Incorporation of Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements
View the list of impacted topics.
Miscellaneous updates
Incorporation of Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements: In accordance with Selling Guide Announcement SEL 2026-07, servicers are advised that we updated the Selling Guide to incorporate the property insurance policy changes communicated via Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements. We updated the Servicing Guide with the related property insurance requirements specific to servicers only.
We made minor edits to align property insurance requirements for renovation mortgage loans and second lien mortgage loans with these updates. Additionally, to improve clarity and flow when incorporating these policy updates, some content in Chapter B-2, Property Insurance Requirements has been reorganized. No additional policy changes were made.
Effective: With respect to the changes in Lender Letter LL-2026-03, servicers are encouraged to implement these changes immediately but must do so by Jan. 1, 2027. The additional minor edits are effective immediately.
Impacted Topics
| Section of the Announcement | Updated Servicing Guide Topics (Dated Aug. 12, 2026) |
|---|---|
| Incorporation of Lender Letter LL-2026-03, Updates to Project Standards & Property Insurance Requirements | - B-2-01, Property Insurance Requirements Applicable to All Property Types - B-2-02, Property Insurance Requirements for One- to Four-Unit Properties - D1-2-01, Renovation Mortgage Loans |
Source: https://singlefamily.fanniemae.com/news-events/announcement-svc-2026-05-servicing-guide-update
Common questions
- What does "Announcement SVC-2026-05 – Servicing Guide Update" cover?
- Fannie Mae's Servicing Guide update SVC-2026-05 incorporates the property insurance policy changes from Lender Letter LL-2026-03 into the Servicing Guide,…
- Which agency issued this update?
- This update was issued by Federal National Mortgage Association.
- When was it published?
- It was published on August 12, 2026.
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