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Refunding a Payment

Requesting a Refund

A refund of an upfront mortgage insurance premium (MIP) payment can be requested through HUD's Single Family Insurance Operations Division (SFIOD). On the FHA Connection, go to the Upfront Premium Collection menu and select Request a Refund in the Pay Upfront Premium section. The Upfront Refund Request page appears for entering refund information. When the refund request is successfully processed, an e-mail message confirming receipt of the request by SFIOD is sent to the user that requested the refund. The e-mail address on record for the user on the FHA Connection is used. (The lender's FHA Connection Application Coordinator can update the user's e-mail address, if necessary.)

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).

Turnaround Time for a Requested Refund

It may take up to 60 days to complete the normal processing of your refund request after HUD receives it. See also Getting Information on Refunds below.

Automatic Refunds

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

  • Any overpayment amount is refunded approximately four weeks after a case is endorsed for FHA mortgage insurance.
  • A payment made for an invalid case number is refunded within four weeks (unless the lender corrects the case number beforehand or the payment is reallocated).
  • A non-endorsed case was canceled by the lender. Upfront MIP remitted for the case is refunded approximately 6-8 weeks after the case is canceled.
  • A non-endorsed case was automatically canceled by HUD's Computerized Homes Underwriting Management System (CHUMS) after 18 months of inactivity. Upfront MIP remitted for the case is refunded approximately 6-8 weeks after the case is canceled.

Mailing Address for Refunds

A refund check is sent to the Endorsement address HUD has on record for the lender. The Endorsement address can be viewed and corrected through HUD's Lender Electronic Assessment Portal (LEAP), which is accessed from the FHA Connection's Lender Functions menu.

Getting Information on Refunds

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