FHA Mortgage Insurance Refund

Many homeowners who have sold homes with FHA insured mortgages are entitled to unclaimed HUD refunds worth hundreds of millions of dollars. Refunds average between $800 - $1500. These amounts are not listed in State unclaimed property databases as they are issued by HUD, an agency of the US. Federal Government, and amounts due and owing by federal agencies are exempt from State reporting.

If you had a Department of Housing and Urban Development (HUD)/Federal Housing Administration (FHA) insured mortgage, you may be eligible for a refund of part of your insurance premium or a share of any excess earnings from the FHA's Mutual Mortgage Insurance Fund.

IMPORTANT - Don't miss the page entitled - Mortgage Insurance List Selection. We printed the list of who may be entitled to Refunds. We repeat Hundreds of Millions are or were owed.

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 up-front 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 up-front 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 up-front 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?

For 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.

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 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 from you.

Many homeowners fail to notify HUD of a new address after a move. The US Postal Service will only forward mail for a six-month period, followed by a six month period of address correction. 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.

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.

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 44372, Washington, DC 20026-4372.

For Private Mortgage Insurance Information (PMI) Click Here

Search the Database to Find out if you are Due a Refund

Enter your last name or Enter your FHA case number (first 3 digits, a dash and the next 6 digits, example, 051-456789).

Mortgage Insurance List Selection Page

The individuals listed in these files are entitled to either of two types of payments: (1) a distributive share payment or (2) an Upfront Mortgage Insurance Premium (UFMIP) refund. HUD attempts to contact mortgagors who are due refunds; however, HUD was unable to locate these individuals who are due payments. After a 2-year location cycle, information on cases remaining unpaid is made available for release to the public under the Freedom of Information Act (FOIA) of 1986, as amended.

The files include:

  • mortgages which were paid off from 1977 through 2 years ago

  • mortgagor name, property address (multiple records if more than one mortgagor) address of last

  • known residence of payee

  • name and address if check was issued and returned

  • amount owed mortgagor

  • pertinent dates associated with terminated case

For additional information or to search the HUD refund database, visit Does HUD Owe You a Refund?

Information on un-located mortgagors is updated monthly and may contain cases for which payments are being processed or which have been paid since the creation of the list.

The current files contain all unpaid cases through August 31, 2011.

(Click on name of the State listed below to download the file)

*These are compressed (zipped) files due to large size or combined multiple state files.

For additional information or technical support please contact HUD's Support Service at 1-800-697-6967.

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