The military branch is responsible for payment of MIP on a Section 222 Mortgage when the Borrower is:
- a certified servicemember at the time of application; and
- the owner of the Property at the time of FHA endorsement.
When FHA is notified that the mortgaged Property has been sold or that the servicemember has been discharged, retired, or has died, FHA will:
- request confirmation from the service branch of the termination of MIP; and
- notify the Mortgagee to begin collecting MIP from the servicemember-Borrower.
spouse, the service branch will be responsible for the following:
- continuing to pay MIP on the Mortgage until two years after the servicemember’s death or until the spouse disposes of the Property, whichever occurs first;
- notifying FHA when eligibility terminates; and
- paying MIP until confirmation of the termination is received by the FHA Comptroller. FHA will notify the Mortgagee of its responsibility for payment of the MIP.
For policy information see Handbook 4000.1 Section III.A.3.f. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh