(a) Duration of payments. Mortgage insurance premium payments must continue annually until one of the following occurs:

(1) The mortgage is paid in full;

(2) A deed to the HFA is filed for record;

(3) An application for initial claim payment is received by the Commissioner; or

(4) The contract of insurance is otherwise terminated.

(b) Method of payment. The HFA shall pay any mortgage insurance premium required by this part in cash.