June 8, 2021: Mortgage Insurance Removal on RHS/USDA Loans

A newsflash published in KnowledgeOwl for Retained Servicing Loans advises Customer Experience team members should not generate a MI Removal Letter for RHS/USDA loan types.  Inform these customers of MI removal eligibility based on the loan’s origination date.


This newsflash information is viewable in KnowledgeOwl for Retained Servicing Loans by navigating to:  Home  >>  News Flash!  >>  June 2021


The details contained in this newsflash are shown below.  Please contact your supervisor or manager if you have any questions.


6/7/2021: Mortgage Insurance Premium (MI) Removal on RHS/USDA Loans

Do NOT generate a MI Removal Letter for RHS/USDA loans.  Inform the customer of their eligibility based on the origination date. 

The loan origination date for Rural Housing Service (RHS) Loans determines if Mortgage Insurance (MI) is required.

  • If the RHS Loan originated on or after October 1, 2011, MI is required for the life of the loan -   This means that borrowers must continue to pay their “annual fee” (mortgage premium), in arrears, until maturity.  RHS/USDA loans can never have the MI removed.


  • If the RHS Loan originated before October 1, 2011, MI is not required - This means there is no “annual fee” (mortgage premium)

Advise the customer that due to the origination date, mortgage insurance must be paid for the life of the loan.  The only option for termination is to refinance the loan.