Fannie Mae will reimburse the servicer its costs for borrower-paid primary MI as required in accordance with B-8.1-02, Paying Conventional Mortgage Insurance Premiums. The servicer is authorized to request reimbursement for servicing advances for MI renewal premiums that are paid after the date of default and through the month that any of the following events occurs:
- a third-party sale,
- a short sale,
- a foreclosure, or
- a Mortgage Release (deed-in-lieu of foreclosure).
If the servicer receives an MI premium refund from the mortgage insurer after receiving reimbursement of the MI premium from Fannie Mae, the servicer must remit the reimbursed funds to Fannie Mae through the CRS using the 336 receipt code within 30 days of Fannie Mae’s request, unless the servicer receives the MI premium refund following the repurchase of a bifurcated loan, in which case the servicer must follow A1-3-03, Repurchase Obligations Related to Bifurcated Mortgage Loans.
For more information please see Servicing Guide F-1-05, Expense Reimbursement.