The Federal Housing Finance Agency announced changes to Fannie Mae and Freddie Mac mortgage insurance requirements intended to reduce homeowners insurance costs and support mortgage eligibility, with a particular focus on rural areas and condominium buildings. Under the updated standards, Fannie Mae and Freddie Mac will accept Actual Cash Value (ACV) coverage for roofs on single-family homes and condos, while maintaining Replacement Cost Value (RCV) coverage for the rest of the property. For condominium buildings, the agencies will also simplify the “maximum per-unit deductible” requirement and remove a 2024 insurance-related “clarification” that the FHFA said would have slowed claims processing and increased costs; the agency indicated the changes should allow some condo buildings that were becoming ineligible to qualify again.
Federal Housing Finance Agency 2026-03-18
Federal Housing Finance Agency eases Fannie Mae and Freddie Mac homeowners insurance requirements by allowing actual cash value roof coverage and simplifying condo rules
The Federal Housing Finance Agency revised Fannie Mae and Freddie Mac mortgage insurance requirements to lower homeowners insurance costs and enhance mortgage eligibility, focusing on rural areas and condos. The updates permit Actual Cash Value coverage for roofs while retaining Replacement Cost Value for other property parts. Additionally, the "maximum per-unit deductible" requirement for condos is simplified, and a 2024 insurance clarification is removed to expedite claims and reduce costs.