Did you have a HUD - FHA Mortgage?

You may be due a refund!

Did you have a HUD - Federal Housing Administration (FHA) insured mortgage? You may qualify for a refund for part of your insurance premium or a share in any excess earnings from FHA's Mutual Mortgage Insurance Fund. Click here to check if HUD owes you a refund.

WARNING: Be careful of people known as "Tracers" soliciting offers to help you collect your refund for a fee. You do not need to hire someone to receive your refund. You can obtain it directly from HUD for free.

Who qualifies for a FHA Refund?

Premium Refund:You may be eligible for a refund of a portion of the insurance premium if you:

· You acquired your loan AFTER September 1, 1983

· You paid an upfront mortgage insurance premium at closing AND

· You 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:

· Your loan was originated before September 1, 1983

· You paid on your loan for more than seven years, AND

· HUD processed your FHA insurance termination BEFORE November 5, 1990.

Exceptions

Assumptions: When a FHA insured loan is assumed, the insurance remains in force and the seller receives no refund. The owner(s) of the property at the time the insurance is terminated is entitled to any refund.

FHA - FHA Refinances: When a 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 is a Refund 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 is a Refund Processed?

• Your mortgage company notifies HUD of the termination of the FHA mortgage insurance for your loan.
• If you qualify 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, the 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 immediately.

How to contact HUD: See your local HUD office.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.

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.

Senior Loan Officer - 20 Years Experience 

Call Peter Boyle 612.701.6816 or pboyle@summit-mortgage.com