Freddie Mac Single-Family Seller/Servicer Guide 8203.5 — FHA insurance, mortgage insurance transfers and cancelations
Freddie Mac Single-Family Seller/Servicer Guide section 8203.5 — FHA insurance, mortgage insurance transfers and cancelations. Full verbatim section text, substring-verified against snapshot 5869ee9e606cd4ae.
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 8203.5 — FHA insurance, mortgage insurance transfers and cancelations — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Single-Family Seller/Servicer Guide 8203.5 — FHA insurance, mortgage insurance transfers and cancelations
This section contains requirements related to: ■ FHA insurance ■ Transfers of mortgage insurance coverage ■ Reporting mortgage insurance cancelations (a) FHA insurance FHA insurance must not be canceled while Freddie Mac has an ownership interest in the Mortgage. The Seller/Servicer must, however, discontinue the collection of FHA insurance premiums from a Borrower automatically or pursuant to a Borrower’s request in accordance with applicable law and FHA regulations. (b) Transfers of mortgage insurance coverage The Seller/Servicer must not transfer the mortgage insurance coverage in effect at the time the Seller/Servicer delivered a Mortgage to Freddie Mac, unless: ■ Coverage must be replaced in conjunction with a third party’s assumption of the Borrower’s Mortgage obligations ■ The existing MI does not renew the existing coverage ■ Freddie Mac has terminated the approval status of the existing MI; or ■ Freddie Mac has instructed the Seller/Servicer to transfer the coverage (c) Reporting mortgage insurance cancelations (i) Seller/Servicer reporting requirements The Seller/Servicer must report the following mortgage insurance cancelation data to Freddie Mac: 1. Cancelation date The cancelation date is defined as the date the Seller/Servicer specifies to the MI that the Seller/Servicer canceled the mortgage insurance. 2. Cancelation reason code The cancelation reason code is a two-place, numeric-alpha code as follows: ■ 1M — Cancelation resulting from a Borrower request based on original value of property in accordance with Sections 8203.2 through 8203.3 or applicable law ■ 1N — Cancelation resulting from a Borrower request based on current value of property in accordance with Sections 8203.2 through 8203.3 or applicable law ■ 1O — Cancelation based on automatic cancelation provisions of Section 8203.4(a) or applicable law (ii) Seller/Servicer reporting timeline If there is no exception activity to report for a Mortgage whose mortgage insurance the Seller/Servicer has canceled, the Seller/Servicer must report the mortgage insurance cancelation data with its monthly loan-level accounting data within three Accounting Cycles after the calendar month of the cancelation date. For example, if the cancelation date is April 5th, the Seller/Servicer must report the mortgage insurance cancelation data with its monthly loan-level accounting data no later than the July Accounting Cycle. If there is exception activity to report for the Mortgage, the Seller/Servicer must defer reporting the mortgage insurance cancelation data until the first available Accounting Cycle in which there is no exception activity to report for that Mortgage. Note: Refer to Section 8301.2(c) for requirements regarding Freddie Mac’s reporting media.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 8203.5 — FHA insurance, mortgage insurance transfers and cancelations
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Source of record: https://claudeforcompliance.com/regs/fhlmc-8203-5/
· register fhlmc-8203-5 · Claude for Compliance. Free to read and download;
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