B-8.2-02, Conversion of FHA Coinsured Mortgage Loans to Full Insurance (11/12/2014)

If a current FHA coinsured mortgage loan is not automatically converted to full insurance when the 60th monthly payment is made, the servicer must contact its Fannie Mae Servicing Representative (see F-4-02, List of ContactsF-4-02, List of Contacts).

If the servicer cannot continue its coinsurance obligations because of its dissolution or bankruptcy, it must notify FHA and provide a list of all coinsured mortgage loans in its Fannie Mae portfolio. The servicer must send Fannie Mae the list of mortgage loans and a copy of FHA’s acknowledgment that the mortgage loans will be converted to full insurance.