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p. Terminating Title I Premium Billing (05/09/2022)
Title I Lenders are obligated to pay the loan insurance premium on any insured Loan until it matures, or until the Loan is prepaid in full or an insurance claim is filed. This obligation continues even if:
• the Lender has exhausted its insurance coverage reserve account, provided that the Loan is current; and/or
• the Lender decides to terminate its Title I Contract of Insurance.
The Title I insurance may be terminated under the following circumstances:
• the Lender files a claim on a Defaulted Loan; or
• the Title I Loan is paid in full. (Enter “paid-in-full” as the exception reason on the Annual Exception Payment screen, under Title I Servicing in FHAC.)