Recent guidance from the FHFA is bringing much-needed clarity and relief to homeowners’ insurance requirements tied to Fannie Mae and Freddie Mac loans. After months of operational strain, legal uncertainty, and rising borrower costs driven by the 2024 GSE bulletins, the agencies have officially walked back several requirements that were creating friction across the mortgage lifecycle.
So what’s actually changing?
In this episode of The Subservicing Scene, Richey May’s Mignonne Davis and Jenifer Hughes break down the FHFA’s March 18, 2026 announcement and what it means in practice for lenders, servicers, and borrowers.
Key updates include:
- Lower-cost insurance options for condos, including the return of Actual Cash Value (ACV) roof coverage and a simplified per unit deductible approach.
- Removal of a confusing 2024 insurance “clarification” that had the potential to slow claims processing and increase costs.
- Expanded acceptance of ACV roof coverage for both single-family homes and condos, addressing a major affordability issue in markets where replacement cost coverage has become prohibitively expensive.
The result?
Broader borrower access to financing, reduced monthly costs, and fewer insurance related roadblocks to closing, without sacrificing core homeowner protections.
▶️ Watch the video to hear our subservicing oversight leaders unpack what changed.
