Search for a Refund
Who may be eligible for an FHA refund or share?
Premium Refund: You may be eligible for a refund of a portion of
the insurance premium if you:
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acquired your loan after September 1, 1983 |
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paid an up-front mortgage insurance premium at closing and
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did not default on your mortgage payments. |
Review your settlement papers or check with your mortgage company to
determine if you paid an up-front premium.
Distributive Share: You may be eligible for a share of any excess
earnings from the Mutual Mortgage Insurance Fund if you:
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originated your loan before September 1, 1983 |
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paid on your loan for more than seven years and |
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had your FHA insurance terminated before November 5, 1990.
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Exceptions:
Assumptions: When an FHA-insured loan is assumed, the insurance
remains in force (the seller receives no refund). The owner(s) of the
property at the time the insurance is terminated is entitled to any
refund.
FHA to FHA Refinances: When an FHA loan is refinanced, the refund
from the old premium may be applied toward the up-front premium required
for the new loan.
Claims: When a mortgage company submits a claim to HUD for
insurance benefits, no refund is due the homeowner.
Statute of Limitations: HUD is not liable for a distributive
share that remains unclaimed 6 years from the date notification was
first sent to the last known address of the mortgagor.
How are refunds determined?
The FHA Commissioner determines how much of the up-front premium is
refunded when loans are terminated. Refunds are based on the number of
months the loan is insured. For any FHA-insured loans with a closing
date prior to January 1, 2001, and endorsed before December 8, 2004, no
refund is due the homeowner after the end of the seventh year of
insurance. For any FHA-insured loans closed on or after January 1, 2001
and endorsed before December 8, 2004, no refund is due the homeowner
after the fifth year of insurance. For FHA-insured loans endorsed on or
after December 8, 2004, no refund is due the homeowner unless they
refinanced to a new FHA-insured loan, and no refund is due these
homeowners after the third year of insurance.
Mortgagee Letter 2005-03 provides additional information on the
recent policy changes regarding refunds of up-front mortgage insurance
premiums.
How are refunds processed?
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Your mortgage company notifies HUD of the termination of the FHA
mortgage insurance for your loan. |
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If you are eligible for a refund, HUD will either request that the
Department of the Treasury (Treasury) issue a check directly to you
or send you an Application for Premium Refund or Distributive Share
Payment (form HUD-27050-B) so that you can provide HUD with
additional information about your case. |
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If you receive a form HUD-27050-B, please read and complete the
application carefully, sign it, have it notarized, and return it to
HUD along with proof that you were the owner of the property at the
time that the insurance was terminated. |
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After HUD receives your completed form HUD-27050-B and the necessary
supporting documentation, this information will be carefully
reviewed. Upon completion of this review, HUD will either request
that Treasury issue a check directly to you or request additional
information from you. |
How to follow-up:
If you do not receive a check or an application within 45 days after you
have paid off your loan, check with your mortgage company to confirm
that they have sent HUD a request to terminate the mortgage insurance on
your loan. If they confirm that the correct termination information was
sent, contact HUD. If you do not receive a refund or any other
documentation from HUD within 120 days after the date you mailed
your application, contact HUD immediately.
How to contact HUD:
Phone: (800) 697-6967, 8:30 a.m. to 8:30 p.m. Eastern Standard
Time, Monday through Friday.
Mail: U.S. Department of Housing and Urban Development, P.O. Box
23699, Washington, DC 20026-3699.
Note: All inquiries should include your name, your FHA case number, the
date that the mortgage was paid-in-full, the property address, and your
daytime phone number.
Si usted habla español y tiene dificultad leyendo o hablando ingles,
por favor,
llame usted a este numero telefonico (800) 697-6967.
IMPORTANT: The rules governing eligibility for premium refunds
and distributive share payments are based on the financial status of the
FHA insurance fund and are subject to change. |
