Maximum loss amount, guarantee period, and conditions.

CFR · 2024-01-01 · US · Title 7

(a) (1) The prompt payment guarantee will cover: (i) Three amortized annual installments; or (ii) An amount equal to three annual installments (including an amount equal to the total cost of any tax and insurance incurred during the period covered by the annual installments). (2) The standard guarantee will cover an amount equal to 90 percent of the outstanding principal balance. (b) (c) (1) An escrow agent must provide the Agency evidence of being a bonded title insurance company, attorney, financial institution or fiscally responsible institution. (2) A servicing agent must provide the Agency evidence of being a bonded commercial lending institution or similar entity, registered and authorized to provide escrow and collection services in the State in which the real estate is located.

official document · source cfr-2024 · id 7:§ 763.11