Refunding a Payment

Information by State  Print version

Requesting a Refund

• Name and ID of mortgagee (enter ID in subject field)
• Upfront refund (specify in subject field)
• FHA case number
• Refund amount for the case
• Reason for refund request
• Date payment was remitted
• Mortgagee contact name including telephone number and fax number (optional)

Upon request, you must submit documentation needed to support the refund.

Note: If the case number was incorrect (or invalid) and it is the first payment remitted for the case, Case Corrections on the FHA Connection can be used to correct the case number instead of processing a refund (see Correcting Case Information Submitted with a Payment). Also, an overpayment or a payment submitted for a wrong or invalid case may be reallocated to another case in the lender's portfolio (see Reallocating or Reapportioning a Payment).

Automatic Refunds

A refund is automatically sent to the remitting lender in the following circumstances:

• Any overpayment amount is refunded approximately two weeks after a case is endorsed for FHA insurance.
  
  
• A payment made for an invalid case number is refunded within 14 days (unless the lender corrects the case number beforehand or the payment is reallocated).
  
  
• If, after 18 months, the case has not been endorsed for FHA insurance, it is canceled. Any upfront MIP remitted for the case is refunded approximately three weeks after the case is canceled.

Mailing Address for Refunds

A refund check is sent to the Insurance Endorsement Address HUD has on record for the lender unless an address is specified in the refund request. The Insurance Endorsement Address can be viewed and corrected through the FHA Connection. See the Lender Approval module of the FHA Connection Guide [PDF] for further information.

Getting Information on Refunds

Use the following options on the FHA Connection's Upfront Premium Collection menu to get information on refunds.

• Refund Details: Provides detailed information on refunds for a specific case related to the payment of upfront MIP. For further information, see the Upfront Premium Case Information module of the FHA Connection Guide [PDF].
  
  
• Disbursed Refunds Report: Lists refunds that were issued to a specified lender within a given date range with respect to the payment of upfront MIP. These are refunds issued by the U.S. Department of the Treasury for which HUD received confirmation. For further information, see the Upfront Premium Reports module of the FHA Connection Guide [PDF].