Mortgagee Clause Updates
Note: Truist specific overlays are underlined.
Last Revision Date: 08/02/2024 (Correspondent)
Change Number: 4077
Page 1 of 6
Topic
Impacted
Document
Impacted
Products
Current Standards
Revised Standards
Mortgagee
Clauses
Section 1.08 –
Loan Delivery and
Purchase Review
Standard
Correspondent
Seller Guide
• Standard
Agency (non-
AUS, DU &
LPA)
• Agency Plus
(DU & LPA)
• Agency Plus
Select (DU &
LPA)
• HomeReady
® (non-AUS
& DU)
• Home
Possible®
(LPA)
• Texas
Section
50(a)(6)
Mortgages
(non-AUS,
DU & LPA)
• Key
• FHA
• VA
• RD
• ARM
Alternative
Mortgagee Clauses
• Security Instrument Assignment
Truist Bank,
its successors and/or assigns
P.O. Box 26149
Richmond, Virginia 23260-6149
• Hazard/Flood Insurance Assignment
Truist Bank, its successors and /or assigns, as their interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-7952
Mortgagee Clauses
• Security Instrument Assignment
Truist Bank,
its successors and/or assigns
P.O. Box 26149
Richmond, Virginia 23260-6149
• Hazard/Flood Insurance Assignment
Truist Bank, its successors and /or assigns, as their interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-7952
Notes:
• It is acceptable for the mortgagee clause to include As Their Interest May Appear (ATIMA) in
addition to Its Successors And/Or Assigns (ISAOA); however, the As Their Interest May Appear
(ATIMA) language is not required to be present.
• Its Successors And/Or Assigns (ISAOA) is required to be present.
• It is acceptable for ISAOA to be spelled out: Its Successors And/Or Assigns.
Hazard Insurance
and Flood
Insurance
Section 1.14 –
Hazard and Flood
Insurance
Standard
Correspondent
Seller Guide
• Standard
Agency (non-
AUS, DU &
LPA)
• Agency Plus
(DU & LPA)
• Agency Plus
Select (DU &
LPA)
• HomeReady
® (non-AUS
& DU)
• Home
Possible®
(LPA)
• Texas
Section
50(a)(6)
Mortgages
Hazard Insurance – 1-4 Unit Single Family Dwelling
Note: Below is an EXCERPT only of the requirements from the above referenced section.
Mortgagee Clause
Mortgagee Clause must read as follows:
Truist Bank, its successors and/or assigns, as their interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-7952
All other currently published requirements in this section remain the same.
Hazard Insurance – 1-4 Unit Single Family Dwelling
Note: Below is an EXCERPT only of the requirements from the above referenced section.
Mortgagee Clause
Mortgagee Clause must read as follows:
Truist Bank, its successors and/or assigns, as their interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-7952
Notes:
• It is acceptable for the mortgagee clause to include As Their Interest May Appear (ATIMA) in addition to
Its Successors And/Or Assigns (ISAOA); however, the As Their Interest May Appear (ATIMA) language is
not required to be present.
• Its Successors And/Or Assigns (ISAOA) is required to be present.
• It is acceptable for ISAOA to be spelled out: Its Successors And/Or Assigns.
Mortgagee Clause Updates
Note: Truist specific overlays are underlined.
Last Revision Date: 08/02/2024 (Correspondent)
Change Number: 4077
Page 2 of 6
Topic
Impacted
Document
Impacted
Products
Current Standards
Revised Standards
(non-AUS,
DU & LPA)
• Key
• FHA
• VA
• RD
• ARM
Alternative
Hazard Insurance – Condominium
Note: Below is an EXCERPT only of the requirements from the above referenced section.
Condominium Insurance Coverage and Deductible Requirements Chart
All-in Master
Bare Walls Master
HO-6 Policy
Name of Insured
Owners’ Association
Owners’ Association
At least one titleholder
Coverage
100% of the insurable
replacement cost of the
project improvements,
including the individual
units.
1
100% of the insurable
replacement cost of the
project improvements.
1
• Purchase and
Refinance – When all
of the unit
components,
including any
betterments or
improvements, are
not already covered
by the association’s
master insurance
policy, the borrower
must obtain an
individual HO-6 policy
that provides
coverage sufficient to
repair the condo unit
to its condition prior
to a loss claim event.
The amount of
coverage required will
be as determined (and
verified in writing) by
the insurer, appraiser,
architect, engineer or
a licensed contractor.
Deductibles for
Fire and/or
Extended
Coverage and
Wind-loss only
Up to 5% of the face
amount of the policy is
allowed
Up to 5% of the face
amount of the policy is
allowed
Up to 5% of the face
amount of the policy is
allowed
Exclusions from
coverage
Policies cannot limit or
exclude from coverage (in
whole or in part)
windstorm, hurricane,
hail damages or any other
perils that are normally
included under an
Policies cannot limit or
exclude from coverage (in
whole or in part)
windstorm, hurricane,
hail damages or any other
perils that are normally
included under an
Policies cannot limit or
exclude from coverage (in
whole or in part)
windstorm, hurricane,
hail damages or any other
perils that are normally
included under an
All other currently published requirements in this section remain the same.
Hazard Insurance – Condominium
Note: Below is an EXCERPT only of the requirements from the above referenced section.
Condominium Insurance Coverage and Deductible Requirements Chart
All-in Master
Bare Walls Master
HO-6 Policy
Name of Insured
Owners’ Association
Owners’ Association
At least one titleholder
Coverage
100% of the insurable
replacement cost of the
project improvements,
including the individual
units.
1
100% of the insurable
replacement cost of the
project improvements.
1
• Purchase and
Refinance – When all
of the unit
components,
including any
betterments or
improvements, are
not already covered
by the association’s
master insurance
policy, the borrower
must obtain an
individual HO-6 policy
that provides
coverage sufficient to
repair the condo unit
to its condition prior
to a loss claim event.
The amount of
coverage required will
be as determined (and
verified in writing) by
the insurer, appraiser,
architect, engineer or
a licensed contractor.
Deductibles for
Fire and/or
Extended
Coverage and
Wind-loss only
Up to 5% of the face
amount of the policy is
allowed
Up to 5% of the face
amount of the policy is
allowed
Up to 5% of the face
amount of the policy is
allowed
Exclusions from
coverage
Policies cannot limit or
exclude from coverage (in
whole or in part)
windstorm, hurricane,
hail damages or any other
perils that are normally
included under an
Policies cannot limit or
exclude from coverage (in
whole or in part)
windstorm, hurricane,
hail damages or any other
perils that are normally
included under an
Policies cannot limit or
exclude from coverage (in
whole or in part)
windstorm, hurricane,
hail damages or any other
perils that are normally
included under an
Mortgagee Clause Updates
Note: Truist specific overlays are underlined.
Last Revision Date: 08/02/2024 (Correspondent)
Change Number: 4077
Page 3 of 6
Topic
Impacted
Document
Impacted
Products
Current Standards
Revised Standards
extended coverage
endorsement.
extended coverage
endorsement.
extended coverage
endorsement.
Mortgagee Clause
Truist Bank, its successors
and/or assigns, as their
interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-
7952
Truist Bank, its successors
and/or assigns, as their
interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-
7952
Truist Bank, its successors
and/or assigns, as their
interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-
7952
Policy Term
12 months
12 months
12 months
All other currently published requirements in this section remain the same.
Flood Insurance
Acceptable Proof of Initial Insurance
Single-family residences, 2 - 4 units and PUDs
Note: Below is an EXCERPT only of the requirements from the above referenced section.
• Mortgagee Clause – mortgagee clause must read as follows:
extended coverage
endorsement.
extended coverage
endorsement.
extended coverage
endorsement.
Mortgagee Clause
Truist Bank, its successors
and/or assigns, as their
interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-
7952
Notes:
• It is acceptable for
the mortgagee
clause to include As
Their Interest May
Appear (ATIMA) in
addition to Its
Successors And/Or
Assigns (ISAOA);
however, the As
Their Interest May
Appear (ATIMA)
language is not
required to be
present.
• Its Successors
And/Or Assigns
(ISAOA) is required
to be present.
• It is acceptable for
ISAOA to be spelled
out: Its Successors
And/Or Assigns.
Truist Bank, its successors
and/or assigns, as their
interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-
7952
Notes:
• It is acceptable for
the mortgagee
clause to include As
Their Interest May
Appear (ATIMA) in
addition to Its
Successors And/Or
Assigns (ISAOA);
however, the As
Their Interest May
Appear (ATIMA)
language is not
required to be
present.
• Its Successors
And/Or Assigns
(ISAOA) is required
to be present.
• It is acceptable for
ISAOA to be spelled
out: Its Successors
And/Or Assigns.
Truist Bank, its successors
and/or assigns, as their
interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-
7952
Notes:
• It is acceptable for
the mortgagee
clause to include As
Their Interest May
Appear (ATIMA) in
addition to Its
Successors And/Or
Assigns (ISAOA);
however, the As
Their Interest May
Appear (ATIMA)
language is not
required to be
present.
• Its Successors
And/Or Assigns
(ISAOA) is required
to be present.
• It is acceptable for
ISAOA to be spelled
out: Its Successors
And/Or Assigns.
Policy Term
12 months
12 months
12 months
All other currently published requirements in this section remain the same.
Flood Insurance
Acceptable Proof of Initial Insurance
Single-family residences, 2 - 4 units and PUDs
Note: Below is an EXCERPT only of the requirements from the above referenced section.
• Mortgagee Clause – mortgagee clause must read as follows:
Mortgagee Clause Updates
Note: Truist specific overlays are underlined.
Last Revision Date: 08/02/2024 (Correspondent)
Change Number: 4077
Page 4 of 6
Topic
Impacted
Document
Impacted
Products
Current Standards
Revised Standards
Truist Bank, its successors and/or assigns, as their interest may appear
(ISAOA/ATIMA)
P. O. Box 7952
Springfield, OH 45501-7952
All other currently published requirements in this section remain the same.
Truist Bank, its successors and/or assigns, as their interest may appear
(ISAOA/ATIMA)
P. O. Box 7952
Springfield, OH 45501-7952
Notes:
• It is acceptable for the mortgagee clause to include As Their Interest May Appear (ATIMA) in
addition to Its Successors And/Or Assigns (ISAOA); however, the As Their Interest May Appear
(ATIMA) language is not required to be present.
• Its Successors And/Or Assigns (ISAOA) is required to be present.
• It is acceptable for ISAOA to be spelled out: Its Successors And/Or Assigns.
All other currently published requirements in this section remain the same.
Section 2.01 -
Agency Loan
Standard
Correspondent
Seller Guide
• Standard
Agency (non-
AUS, DU &
LPA)
• Agency Plus
(DU & LPA)
• Agency Plus
Select (DU &
LPA)
• HomeReady
® (non-AUS
& DU)
• Home
Possible®
(LPA)
• Texas
Section
50(a)(6)
Mortgages
(non-AUS,
DU & LPA)
• Key
• FHA
• VA
• RD
• ARM
Alternative
Property and Flood Insurance
Note: Below is an EXCERPT only of the requirements from the above referenced section
Mortgagee Clause for Property and Flood Insurance
Non-AUS
• Mortgage Clause for Property and Flood Insurance
• The following requirements apply to individual property and flood insurance policies maintained by
the borrower and do not apply to master property and flood insurance policies for project
developments.
• Fannie Mae must not be named in the mortgagee clause unless the coverage or its interest would be
impaired by Fannie Mae not being named. If Fannie Mae is named, the clause must read: "Fannie
Mae, in care of (insert servicer’s name and address here)." This ensures that all matters related to
the applicable insurance policy are referred directly to the servicer and not to Fannie Mae.
• When Fannie Mae is not named in the mortgagee clause, the lender’s name, followed by the phrase
"its successors and/or assigns," and mailing address must be shown as the mortgagee. If the lender
is not the servicer, the servicer’s name, followed by "its successors and/or assigns," and mailing
address must be specified. In all cases, the insurer must be instructed to send all correspondence,
policies, and bills to the servicer (or to both the first and second mortgage servicers).
• If the mortgage is registered with MERS and is originated naming MERS as the original mortgagee of
record, MERS must not be named as mortgagee or loss payee on any property insurance policy. The
mortgagee clause must name the servicer (unless Fannie Mae must be named because the coverage
or its interest would be impaired as mentioned above).
• The following table provides additional requirements for mortgagee clauses.
Property Type
Mortgagee Clause Requirements
One- to four-unit
property
The applicable insurance policy must include (or have attached) a
"standard" or "union" mortgagee clause (without contribution) in the form
customarily used in the area in which the property is located. A loss payable
clause in lieu of a mortgagee clause is not acceptable.
Note: Truist’s mortgagee clause is as follows:
Truist Bank, its successors and/or assigns, as their interests may appear
(ISAOA/ATIMA)
Property and Flood Insurance
Note: Below is an EXCERPT only of the requirements from the above referenced section
Mortgagee Clause for Property and Flood Insurance
Non-AUS
• Mortgage Clause for Property and Flood Insurance
• The following requirements apply to individual property and flood insurance policies maintained by
the borrower and do not apply to master property and flood insurance policies for project
developments.
• Fannie Mae must not be named in the mortgagee clause unless the coverage or its interest would be
impaired by Fannie Mae not being named. If Fannie Mae is named, the clause must read: "Fannie
Mae, in care of (insert servicer’s name and address here)." This ensures that all matters related to
the applicable insurance policy are referred directly to the servicer and not to Fannie Mae.
• When Fannie Mae is not named in the mortgagee clause, the lender’s name, followed by the phrase
"its successors and/or assigns," and mailing address must be shown as the mortgagee. If the lender
is not the servicer, the servicer’s name, followed by "its successors and/or assigns," and mailing
address must be specified. In all cases, the insurer must be instructed to send all correspondence,
policies, and bills to the servicer (or to both the first and second mortgage servicers).
• If the mortgage is registered with MERS and is originated naming MERS as the original mortgagee of
record, MERS must not be named as mortgagee or loss payee on any property insurance policy. The
mortgagee clause must name the servicer (unless Fannie Mae must be named because the coverage
or its interest would be impaired as mentioned above).
• The following table provides additional requirements for mortgagee clauses.
Property Type
Mortgagee Clause Requirements
One- to four-unit
property
The applicable insurance policy must include (or have attached) a
"standard" or "union" mortgagee clause (without contribution) in the form
customarily used in the area in which the property is located. A loss payable
clause in lieu of a mortgagee clause is not acceptable.
Notes: Truist’s mortgagee clause is as follows:
Truist Bank, its successors and/or assigns, as their interests may appear
(ISAOA/ATIMA)
Mortgagee Clause Updates
Note: Truist specific overlays are underlined.
Last Revision Date: 08/02/2024 (Correspondent)
Change Number: 4077
Page 5 of 6
Topic
Impacted
Document
Impacted
Products
Current Standards
Revised Standards
P.O. Box 7952
Springfield, OH 45501-7952
Unit in a project
development
If a unit owner maintains an individual property insurance policy (as
indicated by the project’s legal documents) or if an individual property
insurance policy is required in accordance with “Determining if a Master
Property Insurance Policy is Required” requirements (previously presented
in the “Property Insurance Coverage Requirements for Units in
Condominium and PUD Project Developments” subtopic) for interior
coverage, it must include the standard mortgagee clause as defined above.
If an individual flood insurance policy is required in accordance with
“Requirements for Project Developments” previously outlined in the “Flood
Insurance Coverage Requirements” subtopic, it must include the standard
mortgagee clause as defined above.
A mortgagee clause naming Fannie Mae, the lender, or the servicer is not
required for a master property insurance policy, an NFIP RCBAP, or
equivalent master flood insurance policy issued by a private insurer.
Non-AUS, continued
• Named Insured for Property and Flood Insurance
• See “Evidence of Property Insurance” previously outlined in this document for requirements.
• Notice of Cancellation for Property Insurance
• The following requirements apply to individual property insurance policies maintained by the
borrower and do not apply to master property insurance policies for project developments.
• The following table provides the requirements for notice of cancellation on property insurance
policies.
Property Type
Requirement for Notice of Cancellation
One- to four-unit
properties
The property insurance policy must provide for at least 10 days' written
notice to the named insured and mortgagee(s) before the insurer can
cancel the policy.
Individual units in a
project development
Fannie Mae DU
Follow DU requirements, which are the same as non-AUS requirements.
Freddie Mac LPA
Follow LPA requirements, which are as follows:
• All policies documenting insurance coverage(s) obtained in accordance with Freddie
Mac's requirements for 1- to 4-unit properties must have the insurance industry's standard mortgage
clause. Such clause must provide that the insurer will notify the named mortgagee at least 10 days before
cancellation of the policy.
Truist Note: All flood policies must meet NFIP written notice of cancellation or non-
renewal timeframe requirements.
P.O. Box 7952
Springfield, OH 45501-7952
• It is acceptable for the mortgagee clause to include As Their Interest
May Appear (ATIMA) in addition to Its Successors And/Or Assigns
(ISAOA); however, the As Their Interest May Appear (ATIMA) language
is not required to be present.
• Its Successors And/Or Assigns (ISAOA) is required to be present.
• It is acceptable for ISAOA to be spelled out: Its Successors And/Or
Assigns.
Unit in a project
development
If a unit owner maintains an individual property insurance policy (as
indicated by the project’s legal documents) or if an individual property
insurance policy is required in accordance with “Determining if a Master
Property Insurance Policy is Required” requirements (previously presented
in the “Property Insurance Coverage Requirements for Units in
Condominium and PUD Project Developments” subtopic) for interior
coverage, it must include the standard mortgagee clause as defined above.
If an individual flood insurance policy is required in accordance with
“Requirements for Project Developments” previously outlined in the “Flood
Insurance Coverage Requirements” subtopic, it must include the standard
mortgagee clause as defined above.
A mortgagee clause naming Fannie Mae, the lender, or the servicer is not
required for a master property insurance policy, an NFIP RCBAP, or
equivalent master flood insurance policy issued by a private insurer.
Non-AUS, continued
• Named Insured for Property and Flood Insurance
• See “Evidence of Property Insurance” previously outlined in this document for requirements.
• Notice of Cancellation for Property Insurance
• The following requirements apply to individual property insurance policies maintained by the
borrower and do not apply to master property insurance policies for project developments.
• The following table provides the requirements for notice of cancellation on property insurance
policies.
Property Type
Requirement for Notice of Cancellation
One- to four-unit
properties
The property insurance policy must provide for at least 10 days' written
notice to the named insured and mortgagee(s) before the insurer can
cancel the policy.
Individual units in a
project development
Fannie Mae DU
Follow DU requirements, which are the same as non-AUS requirements.
Freddie Mac LPA
Follow LPA requirements, which are as follows:
Mortgagee Clause Updates
Note: Truist specific overlays are underlined.
Last Revision Date: 08/02/2024 (Correspondent)
Change Number: 4077
Page 6 of 6
Topic
Impacted
Document
Impacted
Products
Current Standards
Revised Standards
• If the mortgage is owned by Freddie Mac, "(name of lender/servicer), its successors and assigns" should
be named as mortgagee instead of Federal Home Loan Mortgage
Corporation.
Note: Truist’s mortgagee clause is as follows:
Truist Bank, its successors and/or assigns, as their interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-7952
All other currently published requirements in this section remain the same.
• All policies documenting insurance coverage(s) obtained in accordance with Freddie
Mac's requirements for 1- to 4-unit properties must have the insurance industry's standard mortgage
clause. Such clause must provide that the insurer will notify the named mortgagee at least 10 days before
cancellation of the policy.
Truist Note: All flood policies must meet NFIP written notice of cancellation or non-
renewal timeframe requirements.
• If the mortgage is owned by Freddie Mac, "(name of lender/servicer), its successors and assigns" should
be named as mortgagee instead of Federal Home Loan Mortgage
Corporation.
Notes: Truist’s mortgagee clause is as follows:
Truist Bank, its successors and/or assigns, as their interest may appear
(ISAOA/ATIMA)
P.O. Box 7952
Springfield, OH 45501-7952
• It is acceptable for the mortgagee clause to include As Their Interest May Appear (ATIMA) in
addition to Its Successors And/Or Assigns (ISAOA); however, the As Their Interest May Appear
(ATIMA) language is not required to be present.
• Its Successors And/Or Assigns (ISAOA) is required to be present.
• It is acceptable for ISAOA to be spelled out: Its Successors And/Or Assigns.
All other currently published requirements in this section remain the same.
