A Mortgagee must have fidelity bond coverage of $300,000.
The Mortgagee must ensure that its fidelity bond coverage is in a form generally acceptable to one of the secondary mortgage market agencies, such as Freddie Mac, Fannie Mae, or the Government National Mortgage Association (GNMA/Ginnie Mae). A Government Mortgagee will meet this requirement if it maintains alternative insurance coverage that is approved by FHA and that ensures the faithful performance of the Mortgagee’s responsibilities.
For additional information see Handbook 4000.1 I.A.3.c.x. available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh