for a Refund
may be eligible for an FHA refund or share?
Refund: You may be eligible for a refund of a portion of the
insurance premium if you:
your loan after September 1, 1983
an up-front mortgage insurance premium at closing and
not default on your mortgage payments.
your settlement papers or check with your mortgage company to determine
if you paid an up-front premium.
Share: You may be eligible for a share of any excess earnings
from the Mutual Mortgage Insurance Fund if you:
your loan before September 1, 1983
on your loan for more than seven years and
your FHA insurance terminated before November 5, 1990.
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.
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.
When a mortgage company submits a claim to HUD for insurance benefits,
no refund is due the homeowner.
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.
are refunds determined?
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.
are refunds processed?
mortgage company notifies HUD of the termination of the FHA mortgage
insurance for your loan.
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.
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.
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
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.
to contact HUD:
(800) 697-6967, 8:30
a.m. to 8:30 p.m. Eastern Standard Time, Monday
U.S. Department of Housing and Urban Development, P.O. Box 44372,
Washington, DC 20026-4372.
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.
usted habla español y tiene dificultad leyendo o hablando
ingles, por favor,
llame usted a este numero telefonico (800) 697-6967.
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.