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This is not a commitment to lend. For use by mortgage professionals only. WestGen Lending is a DBA of Beckam Funding Corp. Available loan amounts and LTV limits subject to Beckam Funding Corp. underwriting
review. Beckam Funding reserves the right to revise programs, rates, and guidelines without notice. All loans are made in compliance with federal, state, and local laws. Beckam Funding Corp. is a California Corporation,
Licensed by Department of Business Oversight under California Finance Lenders Law License #60DBO102460. NMLS# 317332
The contents coverage should equal 100% of the insurable value of all contents (including machinery and
equipment that are not part of the building), owned in common by association members. If the condo
project has no master flood insurance policy or if the master flood insurance policy does not meet the
requirements above, mortgages securing units in that project are not eligible for delivery to Fannie Mae.
Note: DU Refi Plus and Refi Plus loans secured by units in a condo project are not required to meet the
flood insurance requirements for master flood insurance policies stated in this section. Rather, if no master
policy is in place, a standalone dwelling policy may be maintained by the unit owner to meet the full one-
to four-unit requirements. If the master policy is deficient (by any amount), a supplemental policy may be
maintained by the unit owner for the difference between the master policy and the one- to four-unit
rojects Requiring Fidelity/Crime Insurance
Fidelity/crime insurance is required for all condo projects, with the following exceptions that do
not require fidelity/crime insurance:
• condo projects reviewed under the Limited Review method,
• condo or co-op projects consisting of 20 units or less, or
• condo or co-op projects that would need fidelity/crime insurance coverage of $5,000 or less
(based on the calculations described in the Amount of Coverage below).
Note: In states that have statutory fidelity/crime insurance requirements, Fannie Mae accepts those
requirements in place of its own.
equirements for Who Must Be Covered
The HOA or co-op corporation must have blanket fidelity/crime insurance coverage for anyone who either
handles or is responsible for funds that it holds or administers, whether or not that individual receives
compensation for services, including coverage for a management agent. The insurance policy must name
the HOA or co-op corporation as the insured and the premiums should be paid as a common expense by
the association or corporation. A management agent that handles funds for the HOA or co-op corporation
should additionally be covered by its own fidelity/crime insurance policy, which should provide the same
coverage required of the HOA or co-op corporation.
Amount of Coverage
The HOA or co-op corporation policy must cover the maximum funds that are in the custody of the HOA
or co-op corporation or its management agent at any time while the policy is in force. Fidelity/crime
insurance is not required if the maximum estimated funds are less than or equal to $5,000. A lesser
amount of coverage is acceptable if the project’s legal documents require, or another source acceptable
to the lender verifies, that the HOA or co-op corporation and any management company adheres to one
or more of the following financial controls:
• Separate bank accounts are maintained for the working account and the reserve account, each
with appropriate access controls, and the bank in which funds are deposited sends copies of the
monthly bank statements directly to the HOA or co-op corporation.
• The management company maintains separate records and bank accounts for each HOA or co-
op corporation that uses its services, and the management company does not have the authority
to draw checks on, or transfer funds from, the reserve account of the HOA or co-op corporation.
• Two members of the Board of Directors must sign any checks written on the reserve account.
Even then, the fidelity/crime insurance coverage must equal at least the sum of three months of
assessments on all units in the project, unless this calculated amount is less than or equal t
000, in which case fidelity/crime insurance is not required.