Fannie Mae is seeking to save hundreds of millions of dollars in force-placed insurance premiums by lining up alternatives to the dominant carriers in the specialty insurance market, according to people familiar with its effort.

The largest of the government-sponsored enterprises has submitted the as yet unannounced plan to its overseer, the Federal Housing Finance Agency, sources say. Fannie is seeking to require banks and other mortgage servicers to replace existing force-placed policies on loans it guarantees with insurance provided by a consortium of carriers offering 30% to 40% discounts.

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