Freddie Mac Single-Family Seller/Servicer Guide 8202.4 — Evidence of insurance coverage requirements

This section contains information related to: ■ Required evidence of insurance coverage ■ Insurance policies for Condominiums Projects and Cooperative Projects, including master or blanket coverage

(a) Required evidence of insurance coverage For each property securing a Mortgage owned by Freddie Mac, the Servicer must maintain evidence of all required insurance coverages in one of the following forms: ■ An original policy (including the Planned Unit Development (PUD) or condominium homeowners association, Cooperative Corporation or fee simple landowner/lessor’s policy under which the required coverages may be provided in whole or in part) and applicable endorsements ■ A copy of the original policy and applicable endorsements if the copy meets the requirements of Chapter 3302 ■ A certificate, evidence or declarations of insurance showing at least the following information: ❑ Name insured and mortgagee (where applicable, PUD or condominium homeowners association, Cooperative Corporation, fee simple landowner/lessor and PUD, or Condominium Unit, Cooperative Unit or ground lease community mortgagee for all units in which the mortgagee has an insurable interest) ❑ Property address ❑ Type, amount and effective dates of coverage ❑ Deductible amount and coverage to which each such deductible applies ❑ Any endorsement or optional coverage obtained and made part of the original policy ❑ Insurer’s agreement to provide at least 10 days’ notice to the mortgagee (including any applicable PUD or Condominium Unit or ground lease community leasehold mortgagee) before any reduction in coverage or cancelation of the policy; or for Cooperative Projects, 30 days’ notice to the mortgagee before cancelation ❑ Signature of an authorized representative of the insurer, if required by law The Servicer must maintain a specimen of each policy and endorsement for which a certificate, evidence or declarations of insurance is maintained in lieu of the policy and endorsement. If the Servicer documents and tracks the master or blanket condominium homeowners association or Cooperative Corporation insurance policy maintained by a condominium homeowners association or Cooperative Corporation and can cross-reference to such policy each Condominium Unit Mortgage or Cooperative Share Loan the Servicer services for Freddie Mac in the Condominium Project or Cooperative Project that is covered by such policy, the Servicer need not maintain and track a separate insurance certificate for each such Condominium Unit Mortgage or Cooperative Share Loan.

(b) Insurance policies for Condominium Projects and Cooperative Projects, including master or blanket coverage If the Servicer is unable to obtain evidence of insurance for a Borrower’s unit in a Condominium Project, Cooperative Project or a PUD insured under a master or blanket policy, one of the following insurance coverages obtained by the Servicer will meet the evidence of insurance requirements for the Borrower’s unit: ■ A blanket insurance policy carried by the Servicer that provides unit owner coverages as well as loss assessment coverage in the event of an uninsured loss for all Freddie Mac Condominium Unit Mortgages and Mortgages secured by units in a PUD and, if permitted by the Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer ■ An agreement with an insurer to issue an insurance policy that provides unit owner coverage as well as loss assessment coverage in the event of an uninsured loss for all Freddie Mac Condominium Unit Mortgages, Mortgages secured by units in a PUD and, if permitted by the Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer The blanket insurance policy or an agreement with an insurer to provide unit owner coverage as well as loss assessment coverage must meet the following requirements: ■ Be underwritten by an insurer with a current rating meeting the requirements outlined in Section 4703.1 ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide for at least 180 days’ written notice to the Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage ■ Be approved by any regulatory authority to which the Servicer is subject, if such approval is required The Servicer must carry Mortgage impairment or mortgagee interest insurance if it elects not to maintain the documentation described above. The Mortgage impairment or mortgagee interest policy must meet the following requirements: ■ Be underwritten by an insurer with a current rating meeting the requirements outlined in Section 4703.1 ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide coverage in scope and amounts at least equal to those required under Sections 2101.5 and 2101.8 ■ Provide for at least 180 days’ written notice to the Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage ■ Be approved by any regulatory authority to which the Servicer is subject, if such approval is required Having a blanket insurance policy providing unit owners coverage, an agreement with an insurer to provide unit owners coverage, Mortgage impairment or mortgagee interest policy does not relieve the Servicer of any of its Servicing obligations under the Purchase Documents, including the obligations to demonstrate to Freddie Mac that all the minimum insurance coverages required in Chapter 4703 and any other Purchase Document on a property securing a Mortgage serviced for Freddie Mac are indeed in force and to take all remedial actions required in this Chapter 8202 and any other Purchase Document when any such coverage is not in force. In addition to all other remedies of Freddie Mac provided for in the Purchase Documents, the Servicer will indemnify Freddie Mac for any loss Freddie Mac sustains due to the Servicer’s failure to verify that the required insurance is in force on the Mortgaged Premises. The Servicer’s obligation shall in no way be limited to the amount of coverage in force under a Mortgage impairment or mortgagee interest policy.

(Future effective date 01/01/27) This section contains information related to: ■ Required evidence of insurance coverage ■ Insurance policies for Condominiums Projects and Cooperative Projects, including master or blanket coverage

(a) Required evidence of insurance coverage For each property securing a Mortgage owned by Freddie Mac, the Servicer must maintain evidence of all required insurance coverages in one of the following forms: ■ An original policy (including the Planned Unit Development (PUD) or condominium homeowners association, Cooperative Corporation or fee simple landowner/lessor’s policy under which the required coverages may be provided in whole or in part) and applicable endorsements ■ A copy of the original policy and applicable endorsements if the copy meets the requirements of Chapter 3302 ■ A certificate, evidence or declarations of insurance showing at least the following information: ❑ Name insured and mortgagee (where applicable, PUD or condominium homeowners association, Cooperative Corporation, fee simple landowner/lessor and PUD, or Condominium Unit, Cooperative Unit or ground lease community mortgagee for all units in which the mortgagee has an insurable interest) ❑ Property address ❑ Type, amount and effective dates of coverage ❑ Deductible amount and coverage to which each such deductible applies ❑ Any endorsement or optional coverage obtained and made part of the original policy ❑ Insurer’s agreement to provide at least 10 days’ notice to the mortgagee (including any applicable PUD or Condominium Unit or ground lease community leasehold mortgagee) before any reduction in coverage or cancelation of the policy; or for Cooperative Projects, 30 days’ notice to the mortgagee before cancelation ❑ Signature of an authorized representative of the insurer, if required by law ■ Electronic data files that provide sufficient information to determine if a policy meets the minimum requirements outlined in Chapter 4703 The Servicer must maintain a specimen of each policy and endorsement for which a certificate, evidence or declarations of insurance is maintained in lieu of the policy and endorsement. Servicers that rely on electronic data files to determine if a policy meets the minimum requirements outlined in Chapter 4703 must have reasonable procedures in place to mitigate risks associated with not maintaining a specimen of each policy and endorsement, certificate, evidence or declarations of insurance. Servicers must provide legible hard copies of the complete insurance policies and proof of premium payments to Freddie Mac upon request. If the Servicer documents and tracks the master or blanket condominium homeowners association or Cooperative Corporation insurance policy maintained by a condominium homeowners association or Cooperative Corporation and can cross-reference to such policy each Condominium Unit Mortgage or Cooperative Share Loan the Servicer services for Freddie Mac in the Condominium Project or Cooperative Project that is covered by such policy, the Servicer need not maintain and track a separate insurance certificate for each such Condominium Unit Mortgage or Cooperative Share Loan.

(b) Insurance policies for Condominium Projects and Cooperative Projects, including master or blanket coverage If the Servicer is unable to obtain evidence of insurance for a Borrower’s unit in a Condominium Project, Cooperative Project or a PUD insured under a master or blanket policy, one of the following insurance coverages obtained by the Servicer will meet the evidence of insurance requirements for the Borrower’s unit: ■ A blanket insurance policy carried by the Servicer that provides unit owner coverages as well as loss assessment coverage in the event of an uninsured loss for all Freddie Mac Condominium Unit Mortgages and Mortgages secured by units in a PUD and, if permitted by the Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer ■ An agreement with an insurer to issue an insurance policy that provides unit owner coverage as well as loss assessment coverage in the event of an uninsured loss for all Freddie Mac Condominium Unit Mortgages, Mortgages secured by units in a PUD and, if permitted by the Seller’s Purchase Documents, Cooperative Share Loans serviced by the Servicer The blanket insurance policy or an agreement with an insurer to provide unit owner coverage as well as loss assessment coverage must meet the following requirements: ■ Be underwritten by an insurer with a current rating meeting the requirements outlined in Section 4703.1 ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide for at least 180 days’ written notice to the Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage ■ Be approved by any regulatory authority to which the Servicer is subject, if such approval is required The Servicer must carry Mortgage impairment or mortgagee interest insurance if it elects not to maintain the documentation described above. The Mortgage impairment or mortgagee interest policy must meet the following requirements: ■ Be underwritten by an insurer with a current rating meeting the requirements outlined in Section 4703.1 ■ Provide coverage for the Servicer and/or Freddie Mac ■ Provide coverage in scope and amounts at least equal to those required under Sections 2101.5 and 2101.8 ■ Provide for at least 180 days’ written notice to the Servicer and, if applicable, Freddie Mac before canceling or terminating the coverage ■ Be approved by any regulatory authority to which the Servicer is subject, if such approval is required Having a blanket insurance policy providing unit owners coverage, an agreement with an insurer to provide unit owners coverage, Mortgage impairment or mortgagee interest policy does not relieve the Servicer of any of its Servicing obligations under the Purchase Documents, including the obligations to demonstrate to Freddie Mac that all the minimum insurance coverages required in Chapter 4703 and any other Purchase Document on a property securing a Mortgage serviced for Freddie Mac are indeed in force and to take all remedial actions required in this Chapter 8202 and any other Purchase Document when any such coverage is not in force. In addition to all other remedies of Freddie Mac provided for in the Purchase Documents, the Servicer will indemnify Freddie Mac for any loss Freddie Mac sustains due to the Servicer’s failure to verify that the required insurance is in force on the Mortgaged Premises. The Servicer’s obligation shall in no way be limited to the amount of coverage in force under a Mortgage impairment or mortgagee interest policy.