mortgage insurance premium refund

Guest

if i have a fha insured mortgage am i then eligible for part refund of the insurance premium or get a share out of the mutual mortgage insurance fund of federal housing administration/thanks for your help

colin · Posted: Tue Feb 20, 2007 3:34 pm Post subject:

Hi Jack,

Welcome to Mortgagefit forum.

You would be eligible for a refund of some portion of the premium if following conditions are met:

#You got the loan after September 1, 1983
#There were no defaults on mortgage payments and
#At the time of closing you had paid an up-front mortgage insurance premium

Get in touch with your mortgage company or check the settlement papers to know if you had paid any up-front mortgage insurance premium.

Colin

blue · Posted: Tue Feb 20, 2007 3:42 pm Post subject:

Hi Jack,

Let me add that you can also be eligible to get a share of the excess earnings from the MMIF (Mutual Mortgage Insurance Fund) if -

Your loan origination was before September 1, 1983
Before November 5, 1990 you had your FHA insurance terminated and
You continued payments for your loan for more than 7 years.

Do let me know if you have any other questions.

Thanks
Blue

Guest

i want to get clear on few other things, like how the refund is determined and if i am eligible, how the refund is processed, thanks for the help

colin · Posted: Tue Feb 20, 2007 4:08 pm Post subject:

Hi Jack,

Let me tell you about how refunds are determined. When the loan is terminated, how much of the up-front mortgage insurance premium is refunded is determined by the FHA commissioner. The basis for the refunds is the number of months for which the loan was insured.

Regarding processing of the refunds if you are eligible, your lender will notify HUD about the termination of the insurance for your loan. HUD will then send a request to Department of the Treasury for issue of a check in your name. HUD instead of sending a request to the Treasury can also send you an Application for Premium Refund or Distributive Share Payment. It is called the HUD-27050-B form. On this form you will have to provide additional information about your loan.

After getting the form you need to properly fill it, have it notarized & return to HUD with proof of your property ownership at the time the insurance was terminated. HUD will review all the information you will provide and if satisfied would then request the Department of Treasury to issue a check in your favor.

Colin

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