Fannie Mae and Freddie Mac Reduce Homeowner Insurance Requirements

FHFA News Releases

Published March 18th, 2026

Detected March 18th, 2026

Summary

The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac are removing certain homeowners insurance requirements to reduce costs for American homebuyers. These changes, effective March 18, 2026, will allow for the acceptance of Actual Cash Value (ACV) coverage on roofs and simplify deductible rules, particularly benefiting condo owners and those in rural areas.

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What changed

The FHFA, through Fannie Mae and Freddie Mac, has amended property insurance requirements, notably allowing the acceptance of Actual Cash Value (ACV) for roof coverage on single-family homes and condos, and simplifying deductible rules. This action effectively removes a "clarification" from 2024 that was perceived as increasing costs and slowing claims. The stated goal is to reduce insurance bills for millions of homeowners, particularly in rural areas and condominium buildings, making homeownership more affordable.

Regulated entities and mortgage lenders involved with Fannie Mae and Freddie Mac should update their underwriting and property insurance policies to reflect these changes. While the announcement date is March 18, 2026, specific implementation details and transition periods for lenders and borrowers are likely detailed in the linked Fannie Mae Lender Letter and Freddie Mac Bulletin. Compliance with these updated requirements is expected to lead to lower monthly mortgage payments for new and existing homeowners, potentially increasing access to credit for those in areas previously affected by high insurance costs.

What to do next

Update underwriting and property insurance policies to accept ACV roof coverage.
Review and revise internal guidelines regarding maximum per-unit deductibles for condo buildings.
Ensure compliance with the updated insurance requirements for all new and existing Fannie Mae and Freddie Mac mortgages.

Source document (simplified)

News Release

Fannie Mae and Freddie Mac Remove Certain Homeowners Insurance Requirements That Will Reduce Costs

for immediate release 03/18/2026 Washington, D.C. — American homebuyers are about to get a break. New rules for Fannie Mae and Freddie Mac mortgages will help to lower home insurance bills for millions of families, especially in rural areas and condo buildings. The changes fix expensive, stupid Biden-era requirements with simple, common-sense updates that respond to today’s skyrocketing insurance prices.

“Thanks to President Trump’s landslide victory, we are replacing a disruptive and expensive Biden insurance mandate with commonsense policies for today’s market,” said FHFA Director William J. Pulte. “Lower insurance costs and mortgage rates shrink the monthly payment of a new mortgage, giving new homebuyers confidence that they can afford the American dream.”

“Imposing higher costs on families and limiting consumer choice was another outrageous example of big government overreach by the Biden Administration. I’m grateful to the Trump Administration and Federal Housing Director Pulte for working with me to repeal this harmful mandate, giving families the flexibility they need and ensuring rural communities have better access to choose an insurance plan that best reflects their needs,” said Senator Eric Schmitt.

What’s Actually Changing

Big Wins for Condo Owners and Buyers
- Condo buildings can now use the cheaper ACV roof coverage.
- The complicated “maximum per-unit deductible” rule has been simplified.
- Result: Many condo buildings that were getting priced out of the mortgage market will now qualify again.
A Confusing 2024 Rule Is Gone
- The agencies are scrapping an unnecessary “clarification” from 2024 that would have slowed down insurance claims and driven up costs for no good reason.
Roof Insurance Gets Way More Affordable
- Fannie and Freddie will now accept Actual Cash Value (ACV) coverage on roofs for single-family homes and condos.

à ACV pays what your roof is actually worth today.
- The rest of the house still gets full Replacement Cost Value (RCV) protection – meaning it will be rebuilt brand-new if disaster hits.
- This fixes a real problem: full replacement roof coverage has become ridiculously expensive and hard to find in many states.
These updates mean lower monthly payments, more first-time buyers able to close on homes, and rural communities keeping access to insurance they were at risk of losing. Homeowners still get strong protection – just at prices that actually make sense in 2026. Bottom Line: if you’re buying a home or condo, or already own one with a Fannie or Freddie mortgage, your insurance bill just got easier to swallow.

Fannie Mae Update

Freddie Mac Update

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $8.5 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on X @FHFA, YouTube, Facebook, and LinkedIn.

Contacts: MediaInquiries@FHFA.gov