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Many of the FHA loans that qualify for refunds were written in
the 1980s and 1990s, Ian Davis, director of single-family
insurance operations for HUD, said. But not all of them. He
encourages anyone who used an FHA loan to buy a house to go to
the HUD website to check to see if they qualify.
Even if a home has been sold and/or if the original FHA borrower
is deceased, HUD will issue refund checks to people or to the
heirs of people who paid the required mortgage insurance
payments.
“These were not overcharges. This is the result of different
program requirements and loan requirements back then,” Davis
said.
The refunds range from as little as one cent to as much as
$6,000 or even more, Davis said.
“The amount of the refund depends on the underwriting that
occurred with the loan,” he said. “These are funds owed to the
public and we are doing our best to make it easier for people
not only to inquire about the refunds but also to get the money
back that is owed to them.”
HUD is streamlining the process for people to apply for the
refunds, Davis said. Typing the phrase “Does HUD owe you a
refund?” in a search engine directs people to the HUD webpage
where you can start the process.
If people have the original FHA loan number for the property,
that will help. Locate the HUD1 sheet that was issued when the
home was purchased or when it was sold and the loan was paid
off. Three companies may have copies of the HUD1 sheet: the bank
that issued the loan, the settlement company or title company
and sometimes the real estate agent.
If the house has been sold, a HUD1 form should be part of the
paperwork that the title company issued at closing.
For questions, get in touch with HUD for further assistance.
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