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SVC 11-12: Mortgage Insurance Coverage and Confirmation of Repurchase Policies and Remedies for Warranty Violations

Fannie Mae will only purchase a mortgage loan for Fannie Mae’s portfolio or an MBS security with a loan-to-value (LTV) ratio greater than 80% if the mortgage loan has mortgage insurance or another charter-compliant form of credit enhancement. Unless the lender has provided another charter-compliant form of credit enhancement, the lender must have obtained a primary mortgage insurance policy for a conventional first mortgage loan that has an LTV ratio greater than 80% by the time the loan is purchased for Fannie Mae’s portfolio or securitized. To read the entire Service Guide, click here.

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