What Mortgage & Real Estate Professionals Need to Know About the New Fannie & Freddie Insurance Changes (2026)

On March 18, 2026, Fannie Mae and Freddie Mac announced an important update to property insurance requirements for federally-backed mortgages—and it’s one that could directly impact your borrowers, closings, and long-term client satisfaction.

The Big Change: Roof Coverage Flexibility

Historically, homeowners insurance policies for Fannie Mae and Freddie Mac loans required Replacement Cost Coverage on roofs. As of March 2026 that has now changed.

• Replacement Cost is no longer required for roof coverage

• Actual Cash Value (ACV) coverage is now acceptable

This is a significant shift—and one that creates both opportunities and risks.