After a mortgage loan is modified, the servicer must not
include a factor in the servicing fee for lender-purchased MI coverage paid through annual or monthly renewal premiums, or
allow an excess servicing fee.
With the exception of a mortgage loan modified under the Fannie Mae HAMP modification program, the servicer has the option of funding the payment of renewal premiums from its own corporate funds or from the borrower’s escrow account.
For more information please see: B-8.1-02, Paying Conventional Mortgage Insurance Premiums.