First, once you understand the environmental conditions that Termites need to survive, then you can decide if mulching should be continued.
Termites need a food source, plus dark, damp, temperate conditions to thrive. If you alter ANY, or all, of these conditions sufficiently enough, they'll most likely go away. I have the feeling that moisture is the largest contributor to your problem.
Check out this link - http://www.termitebites.com/prevention_tips.html for what you need to do. If you can 'move', or remove, the water from the area in question, I think you'll do much better. Also, IMPROVE the flow of air and access of sunlight to the area(s) in question. Trim the tree canopy, and move, or remove, bushes that might be obstructing air flow to the area(s) in question, and see what happens. All this is fairly easy to do. Just be careful with the pruner tools!