Freddie Mac Single-Family Seller/Servicer Guide 4703.7 — Mortgagee clause

Freddie Mac Single-Family Seller/Servicer Guide 4703.7 — Mortgagee clause

Effective 2026-09-16 · Freddie Mac's stamp for this section

This section contains: ■ General requirements for mortgagee clauses ■ Insurance documentation requirements ■ Named insured requirements (a) General requirements for mortgagee clauses All policies documenting insurance coverage(s) obtained in accordance with Freddie Mac’s requirements for 1- to 4-unit properties and HO-6 policies must have the insurance industry’s standard mortgagee clause. Such clause must provide that the insurer will notify the named mortgagee at least 10 days before cancelation of the policy. If the Mortgage is owned by Freddie Mac, “(name of Seller/Servicer), its successors and assigns” should be named as mortgagee instead of Federal Home Loan Mortgage Corporation. In deed-of-trust jurisdictions, the mortgagee should be designated as “(name of Seller/Servicer), its successors and assigns, beneficiary.” If the Federal Home Loan Mortgage Corporation must be named as mortgagee, the endorsement must show the Seller’s address in lieu of Freddie Mac’s, as shown in the example below: FEDERAL HOME LOAN MORTGAGE CORPORATION C/O ABC SAVINGS AND LOAN ASSOCIATION 100 MAIN STREET HOMETOWN USA 12345 If the Mortgage is registered with MERS® and is originated naming MERS as the original mortgagee of record, under no circumstances may MERS be named as loss payee on any property insurance policy. (b) Insurance documentation requirements Regardless of how the mortgagee clause is endorsed, or if the Mortgage is registered with MERS, the Seller/Servicer must arrange for all insurance drafts, notices, policies, invoices, etc., to be delivered directly to the Seller/Servicer. Although the MERS address appears in county land records, the address for MERS must not be given to organizations that normally direct mail to the Seller/Servicer or Servicing Agent. When a mortgagee clause is not applicable (e.g., in a separate policy of commercial general liability), a certificate of insurance must be provided to the Seller/Servicer. This certificate must contain the information required for certificates or other evidence of insurance in Section 8202.4, with the Seller/Servicer named as certificate holder instead of mortgagee. (c) Named insured requirements The master insurance policy(ies) of the homeowners association, Cooperative Corporation or fee simple landowner/lessor of the ground lease community must name the insured in substantially the same language indicated below. For Planned Unite Developments (PUDs): Association of Owners of the [Name of PUD] Planned Unit Development for the use and benefit of the individual owners (designated by name, if required by law or the governing documents). For ground lease communities: [Name of the lessor] of the [Name of the ground lease community] for the use and benefit of the individual lessees (designated by name, if required by law or by the lease). For Condominium Projects: Association of Owners of the [Name of Condominium Project] Condominium for the use and benefit of the individual owners (designated by name, if required by law or the governing documents). For Cooperative Projects: Board of Shareholders of the [Name of Cooperative Corporation] for the use and benefit of the shareholders (designated by name, if required by law or the governing documents).

Source: Freddie Mac Single-Family Seller/Servicer Guide 4703.7 — Mortgagee clause · source URL · snapshot e399c3dcaab28da0