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:
|
acquired
your loan after September 1, 1983
|
paid
an up-front mortgage insurance premium at closing and
|
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:
|
originated
your loan before September 1, 1983
|
paid
on your loan for more than seven years and
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had
your FHA insurance terminated before November 5, 1990. | | |
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?
|
Your
mortgage company notifies HUD of the termination of the FHA mortgage insurance
for your loan.
|
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.
|
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.
|
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. |