You received a letter or postcard notifying you of a refund, now what?
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. If you do not receive your FHA Mortgage Insurance Premium refund check or an application within 45 days after you have paid off your mortgage, National M.I.P. Refunds will assist you with the recovery of your FHA Mortgage Insurance Premium refund.
If you've received a letter or postcard from our company stating that you are due a refund and would like us to assist you with the recovery of your refund, please do not complete the free inquiry request. Simply call us for more information regarding your refund, or download the Tracer Found Case Form, complete it with as much information as possible about your property, sign and mail it in with your fee. For faster service please fax your TFC form and mail the original as well along with your fee. Please keep in mind that your refund check is sent directly to you from HUD. Once we receive your payment we can immediately start the recovery process on your behalf. You may also conveniently pay by credit card on our Make A Payment page after your account is set up, and be sure to ask about easy payment arrangements. Lastly, call us to ensure receipt of your Tracer Found Case Form and fee.
If you have general questions, please call us and leave a very detailed message. We will research your information and return the call as quickly as possible.
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:
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acquired your loan after September 1, 1983 |
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paid an up-front mortgage insurance premium at closing and |
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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:
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originated your loan before September 1, 1983 |
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paid on your loan for more than seven years and |
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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.
TIME IS OF THE ESSENCE! To avoid losing your refund, it is imperative that you act now!
How are refunds determined?
The FHA Commissioner determines how much of the up-front premium is refunded when loans are terminated. Refunds are based on the number of months the loan is insured. 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.
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