source:
  type: guide
  id: fnma-sel-b7-1-05
  authority: Fannie Mae Selling Guide B7-1-05 — Government Mortgage Loan Guaranty
    or Insurance
  description: Fannie Mae Selling Guide B7-1-05 — Government Mortgage Loan Guaranty
    or Insurance.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-1-05-full
  canonical_id: fnma-sel-b7-1-05-full
  section: Fannie Mae Selling Guide B7-1-05 — Government Mortgage Loan Guaranty or
    Insurance
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-1-05 — Government Mortgage Loan Guaranty
      or Insurance
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B7-1-05, Government Mortgage Loan Guaranty or Insurance (02/23/2016)
      Introduction This topic contains information on government mortgage loan guaranty
      or insurance, including: Evidence of Government Guaranty or Insurance Inability
      to Obtain Guaranty or Insurance Prior to Delivery Lapse of Governmental Authority
      Special Feature Code for Lapse of Government Authority Evidence of Government
      Guaranty or Insurance Lenders must obtain the required government guaranty or
      government insurance. The following table lists the acceptable forms of evidence
      of government guaranty or insurance: Mortgage Type Evidence FHA FHA Mortgage
      Insurance Certiﬁcate (HUD Form 59100) Published May 6, 2026 841 Mortgage Type
      Evidence VA VA Loan Guaranty Certiﬁcate (VA Form 26-1899) RD RD Loan Note Guarantee
      (Form RD 1980-17) HUD Section 184 Indian Loan Guarantee Certiﬁcate (HUD Form
      53039) Inability to Obtain Guaranty or Insurance Prior to Delivery Evidence
      of the guaranty or insurance should be obtained before loan delivery, if possible.
      If this is not possible, the lender represents and warrants, by delivery of
      the loan, all of the following: A complete and satisfactory mortgage guaranty
      or insurance application was submitted to the government agency within the required
      time frame, either based on an agency’s prior approval of the loan application
      and issuance of a commitment to insure or guarantee, or subject to an agency’s
      delegated or automatic loan approval processing, as applicable. The mortgage
      insurance premiums, funding fee, or guarantee fees were paid to the government
      agency within the government agency’s required time frame. The government agency
      has the legal authority to issue the guaranty or insurance and will have such
      authority for long enough to issue the guaranty or insurance within a time period
      that is consistent with its past practice. After delivery of a mortgage loan,
      if a lender fails to obtain the guaranty or insurance in a timely manner, as
      determined by Fannie Mae, the lender must repurchase the mortgage and make Fannie
      Mae whole for any losses incurred by Fannie Mae. In addition, Fannie Mae may
      suspend or terminate the lender’s authority to deliver the following: mortgages
      for which it has not already received the government mortgage guaranty or insurance,
      any government mortgage or any particular category of government mortgage, or
      any mortgage. The lender must notify its Fannie Mae customer account team if
      the government agency declines to issue the mortgage guaranty or insurance for
      any reason for any loan delivered to Fannie Mae. Fannie Mae may require the
      lender to provide periodic reports on the guaranty or insurance status for all
      government mortgages sold to Fannie Mae. Such reports must be provided within
      the requested time frame. Lapse of Governmental Authority Occasionally, a government
      agency’s guaranty or insurance authority may lapse. This occurrence is in contrast
      to ordinary circumstances in which there may be a delay in obtaining the government
      guaranty or insurance, but there is no reason to expect the government agency
      not to provide the guaranty or insurance within a time Published May 6, 2026
      842 period that is consistent with its past practice. Mortgages that are not
      yet guaranteed or insured due to a lapse of governmental authority must be delivered
      with the government loan identiﬁer in accordance with Fannie Mae’s usual procedures.
      However, for credit enhancement purposes, Fannie Mae treats such mortgages as
      conventional mortgages, rather than as government mortgages. Fannie Mae will
      accept delivery of such mortgages only if: The government agency is continuing
      to accept applications and permit lenders to create direct endorsements or conditional
      commitments during the period of the lapse. The delivery is for portfolio purchase
      rather than issuance of MBS. The lender agrees to the repurchase requirements
      described below. The lender must repurchase the mortgage and make Fannie Mae
      whole for any losses incurred by Fannie Mae in the following situations: for
      whole loans in Fannie Mae''s portfolio, if the mortgage becomes delinquent before
      the insurance or guaranty is issued; the lender fails to notify Fannie Mae of
      its receipt of the guaranty or insurance within 60 days of when the government
      agency resumes issuance of the guaranty or insurance; the lender delivers a
      mortgage that the government agency cannot insure or guarantee. Special Feature
      Code for Lapse of Government Authority When a lender delivers mortgages during
      a lapse in government authority, it must include the government loan identiﬁer
      in accordance with Fannie Mae’s usual procedures and report SFC 001 at delivery,
      to indicate the existence of the lender’s repurchase obligation in lieu of the
      government guaranty or insurance. Upon receipt of the guaranty or insurance,
      the lender must contact its Fannie Mae customer account team to request removal
      of SFC 001. Once it is removed, Fannie Mae’s record will reﬂect that the mortgage
      is government guaranteed or insured. Recent Related Announcements There are
      no recently issued Announcements related to this topic. Chapter B7-2, Title
      Insurance Introduction This chapter contains information on title insurance,
      including required title insurance coverage, title insurer eligibility standards,
      special title insurance coverage considerations, acceptable and unacceptable
      title exceptions, and attorney title opinion letter requirements. Published
      May 6, 2026 843'
  judgment: false
