In order to align with agency requirements, AHFA/ServiSoutions is notifying our participating lenders that we are updating our guidelines to advise a cancellation notice must be included on all HOI polices/ dec pages/ binders, indicating a written notice must be provided to the named insured and mortgagee(s) before the insurer can cancel the policy. 

Below is an example of a cancellation notice:

“The policy is subject to the premiums, forms and rules in effect for each policy period. Should the policy be terminated, the company will give additional interest identified below 30 days written notice and will send notification of any changes to the policy that would affect that interest, in accordance with the policy provisions or as requested by law”.  

The requirement is effective immediately for Fannie Mae loans that are currently in our pipeline and not yet purchased. However, this requirement will be effective for all new closed loans received on/ after January 2, 2025. 

The “Hazard Insurance Policy and/ or Binders” section of our Loan Delivery and Purchase Guidelines is currently being updated and will soon be available on our AllRegs site.

If you have any questions, please contact Ashley Rawlinson, arawlinson@ahfa.com or Brian Hunt, bhunt@ahfa.com.