The borrower’s payments are considered current if the payment due in the month preceding the scheduled termination date, or the mid-point of the amortization period, as applicable, was paid by the end of the month in which the payment was due.
Below describes the action the servicer must take depending upon the status of the borrower’s payments.
If the borrower's payments are NOT CURRENT, Then the sevricer...
must not terminate the MI, even if the other eligibility criteria for automatic termination are met.
The servicer must
notify the borrower within 30 days after the termination date the MI was not automatically terminated because the payments were not current, and
terminate the MI immediately if the borrower’s payments are current at the time of a subsequent review.
For more information please see: B-8.1-04 , Termination of Conventional Mortgage Insurance.