Fannie Mae DUS | 2026-10-30

Fannie Mae Multi-Property Closings Need a Title-Allocation Map

Form 4650 links each separate policy to the property's allocated loan amount, a tie-in endorsement, matching legal descriptions, and essential appurtenant rights.

Fannie Mae's current Title and Closing Requirements for Multifamily Mortgage Loans, Form 4650, generally require the title policy to be issued in the original principal amount of the mortgage loan. When one mortgage loan is secured by multiple properties with separate title policies, the policy amount for each property must be at least the portion of the mortgage loan allocated to that property. Each separate policy must also include a tie-in or aggregation endorsement when applicable law permits it.

The allocation and endorsement are only part of the policy review. Form 4650 requires the policy to insure the priority of the security instrument lien, except for a Supplemental Mortgage Loan, subject only to permitted encumbrances. It must be in full force and effect with all premiums paid and no claims made by the lender or paid under the policy. The lender must attach a compliant marked commitment or pro forma policy to its closing instruction letter as evidence of the underwriter's commitment to issue coverage effective when the loan funds.

The insured legal description must be identical to the legal description on any required survey and in the security instrument. The policy must also insure as appurtenant any access easement, private road, or other shared-use interest the lender considers essential. On a multi-property file, those checks must be completed property by property; a correct aggregate premium or total coverage figure does not cure a mismatch in one parcel's description or appurtenant rights.

A practical title-allocation map should list each property, allocated loan amount, proposed policy amount, title underwriter, policy or commitment number, tie-in or aggregation endorsement, legal-description comparison, essential easements, and coverage effective-date plan. Reconcile the map with the lender's allocation, surveys, security instruments, marked commitments, and closing instructions before funding, then retain it through final-policy delivery. This note is informational only and is not legal advice for any specific transaction.