The servicer must execute the termination or cancellation of FHA MIP payments in accordance with applicable FHA guidelines for
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.
See below for related Q&A's:
For more information please see: B-8.2-03 Termination or Cancellation of FHA Mortgage Insurance and FHA Mortgage Insurance Premium.