Freddie Mac Seller/Servicer Guide 4703.4: Localized perils insurance
If the Seller/Servicer becomes aware of localized perils (i.e., sinkhole, mine subsidence, volcanic eruption, landslides) that are not covered by standard property insurance, then the Seller/Servicer must require the Borrower to obtain appropriate insurance coverage in accordance with the terms of the Security Instrument and applicable law.
Freddie Mac publishes the full text of this section: Freddie Mac Seller/Servicer Guide 4703.4 on the Freddie Mac website. Zeitro Strata answers questions about it with the passage and page cited.
Guideline text quoted as published by the agency. The latest published version governs. This is not an underwriting decision.