Federal National Mortgage Association
Lender Letter LL-2026-07 Updates to Mortgage Insurance Termination Requirements
September 16, 2026
Summary
Fannie Mae Lender Letter LL-2026-07 permits servicers to proactively solicit borrowers whose conventional mortgage loans may be eligible for mortgage insurance (MI) termination based on current property value. Servicers must follow existing borrower-initiated MI termination procedures in the Servicing Guide. This policy change is effective immediately.
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Lender Letter (LL-2026-07)
To: All Fannie Mae Single-Family Servicers
Updates to Mortgage Insurance Termination Requirements
At the direction of U.S. Federal Housing (FHFA), we are updating our requirements related to termination of conventional mortgage insurance to permit servicers to solicit borrowers that may be eligible for mortgage insurance termination based on the current value of the property.
This policy change will be reflected in a future Servicing Guide update.
Servicer solicitation of loans that may be eligible for mortgage insurance termination based on current value
We are permitting servicers to proactively solicit borrowers whose mortgage loans may be close to or have reached the loan-to-value (LTV) requirements for mortgage insurance (MI) termination based on current value of the property and notify the borrower of the actions required to terminate MI as listed in Borrower-Initiated Termination of Conventional Mortgage Insurance Based on Current Value of the Property in Servicing Guide B-8.1-04, Termination of Conventional Mortgage Insurance.
Effective: This policy change is effective immediately.
Common questions
- What does "Lender Letter LL-2026-07 Updates to Mortgage Insurance Termination Requirements" cover?
- Fannie Mae Lender Letter LL-2026-07 permits servicers to proactively solicit borrowers whose conventional mortgage loans may be eligible for mortgage…
- Which agency issued this update?
- This update was issued by Federal National Mortgage Association.
- When was it published?
- It was published on September 16, 2026.
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