Freddie Mac released instructions regarding forms used for evidence of insurance.

Freddie Mac become aware of several standard industry forms used to evidence insurance coverage on the properties securing mortgages offered for sale to, or serviced for Freddie Mac that conflict with the Single-Family Seller/Servicer Guide.

Evidence-of-insurance forms that display statements conflicting with the standard mortgage clause in the underlying property insurance policy are not acceptable for Freddie Mac-owned mortgages.

Freddie Mac found conflicting statiements in forms designated as ACORD 27, Evidence of Property Insurance, and ACORD 28, Evidence of Commercial Property Insurance, both dated July 2006, which are evidence of insurance forms used by some insurers.

Freddie Mac urges customers and their insurance trackers, if any, to carefully review evidence-of-insurance forms obtained in the normal course of their loan origination or loan servicing business to ensure they comply with the Guide requirements.

To view the full announcement, please click here.