Why do servicers require updated insurance information?
Servicers must verify that borrowers maintain adequate insurance coverage to protect the property and the mortgage. Updated insurance information ensures taxes and premiums are paid correctly and prevents coverage lapses that could expose Freddie Mac to financial risk.
Related FAQs
- Why do servicers collect escrow for taxes?
- Can property tax assessments affect my payment?
- Why do servicers require insurance premium updates?
- Can escrow shortages be paid over time?
- Why do servicers perform escrow analyses?
- What is an escrow surplus?
- Can escrow accounts be recalculated mid‑year?
- Why does my escrow payment change?
- What is an escrow shortage?
- Can I pay my own taxes and insurance instead of using escrow?
- What happens if my insurance premium increases?
- Can I make extra payments toward principal?
- How are mortgage payments applied?
- What is an escrow account?