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 upfront 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 upfront 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

* 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 upfront 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 upfront premium is refunded when loans are terminated. Refunds are based on the number of months the loan is insured. For loans with a closing date prior to January 1, 2001, no refund is due the homeowner after the end of the seventh year. For loans closed on or after January 1, 2001, no refund is due the homeowner after the fifth year.

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 suporting 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.

If your name appears in the results of a database search, please call our support center at (800) 697-6967 to inquire about the refund or share. If your name does not appear in the results of a database search, but you believe that you are owed a refund or share, please call this same toll free number to ask about the status of your case.