24 CFR 266.620 - Termination of Contract of Insurance.
The Contract of Insurance shall terminate if any of the following occurs:
(a) The mortgage is paid in full;
(b) The HFA acquires the mortgaged property and notifies the Commissioner that it will not file an insurance claim;
(c) A party other than HFA acquires the property at a foreclosure sale;
(d) The HFA notifies the Commissioner of Termination of Insurance (voluntary termination);
(e) The HFA or its successors commit fraud or make a material misrepresentation to the Commissioner with respect to information culminating in the Contract of Insurance on the mortgage or while the Contract of Insurance is in existence;
(f) The receipt by the Commissioner of an Application for Final Claims Settlement;
(g) If the HFA acquires the mortgaged property and fails to make an initial claim.