Who may be eligible for a MMI distributive share payment?

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 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.

For more information see the FHA Homeowners Fact Sheet at https://entp.hud.gov/dsrs/help/fhafacts.cfm

Homeowners Fact Sheet

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-01178