source:
  type: guide
  id: fnma-svc-b-8.2-03
  authority: Fannie Mae Servicing Guide B-8.2-03 — Termination or Cancellation of
    FHA Mortgage Insurance and FHA Mortgage Insurance Premium
  description: Fannie Mae Servicing Guide B-8.2-03 — Termination or Cancellation of
    FHA Mortgage Insurance and FHA Mortgage Insurance Premium.
  coverage_tier: operative
obligations:
- id: fnma-svc-b-8.2-03-full
  canonical_id: fnma-svc-b-8.2-03-full
  section: Fannie Mae Servicing Guide B-8.2-03 — Termination or Cancellation of FHA
    Mortgage Insurance and FHA Mortgage Insurance Premium
  type: do
  tags:
  - regulator-direct
  - fnma
  - servicing-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Servicing Guide B-8.2-03 — Termination or Cancellation of
      FHA Mortgage Insurance and FHA Mortgage Insurance Premium
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide
    snapshot_id: cf63a82bbb4adfba
    fetched_at: '2026-05-22T23:53:19Z'
    content_hash: sha256:89df66c43baad07f8a8dd9d224492fff7d15e8839edba02ad0e74c7e50fe5da3
    paragraph_quote: B-8.2-03, Termination or Cancellation of FHA Mortgage Insurance
      and FHA Mortgage Insurance Premium (11/12/2014) The servicer must execute the
      termination or cancellation of FHA MIP payments in accordance with applicable
      FHA guidelines for automatic cancellation, borrower-initiated cancellation based
      on a partial prepayment, or borrower-initiated cancellation based on current
      value of the property. Upon receipt of a borrower’s written request to cancel
      the FHA MIP based on the current value of the property, the servicer must evaluate
      the request in accordance with Fannie Mae’s provisions to terminate conventional
      MI based on the current value of the property, as described in Borrower-Initiated
      Termination of Conventional Mortgage Insurance Based on Current Value of the
      Property in B-8.1-04, Termination of Conventional Mortgage Insurance. The servicer
      must not cancel FHA MI for any FHA-insured mortgage loan in an MBS or other
      Fannie Mae-issued mortgage security pool. The following table outlines the servicer’s
      responsibilities if the criteria for canceling FHA MIP are satisﬁed. ✓ The servicer
      must... Notify FHA to cancel the FHA MIP. Published May 13, 2026 203 ✓ The servicer
      must... Notify Fannie Mae of the cancellation in accordance with Reporting Discontinuance
      of Mortgage Insurance in the Investor Reporting Manual for detailed reporting
      requirements. Retain supporting documentation in the mortgage loan servicing
      ﬁle. Recent Related Announcements There are no recently issued Announcements
      related to this topic. Published May 13, 2026 204 Part C, Mortgage Loan Payment
      Processing, Remitting, Accounting, and Reporting Introduction This part contains
      information on mortgage loan payment processing, remitting, accounting and reporting.
      Published May 13, 2026 205 Chapter C-1, Processing Mortgage Loan Payments Introduction
      This chapter contains information on processing mortgage loan payments. Section
      C-1.1, Processing Scheduled Mortgage Loan Payments
  judgment: false
