The lender may request cancellation of a case number by submitting a request to HUD. A case number will be canceled only if:

• an appraisal has not been completed and the borrower will not close the mortgage as an FHA-insured mortgage;
• FHA mortgage insurance will not be sought; or 
• the appraisal has already expired.  

Please note that you cannot request a case number cancellation for an endorsed (insured) loan or for a case number that your company does not hold.
 
If MIP funds have been paid, the lender must request a refund of all monies paid once the cancellation has been processed.   
 
Generally speaking, case numbers will remain with the property. Should a sale fail to close, the lender should update the borrower information if originating a new loan for subsequent purchasers or transfer the case number to a new lender if requested.  Case numbers will not be canceled to facilitate obtaining a new appraisal prior to its expiration.   
 
The lender must submit a request for cancellation to the FHA Resource Center at answers@hud.gov and include:

• “Case Cancellation” and the FHA Case Number in the Subject Line
• lender name, email address, telephone number and contact information
• a request on company letter head showing the name of the company, contact information and the reason for case cancellation
• the completed Case Cancellation Request Form 

Only one case cancellation request may be sent per email.

Please do not send a request multiple times. 

The Case Cancellation Request Form is available on the Case Processing Requirements web page at https://www.hud.gov/program_offices/housing/sfh/lender/origination/case_processing_req
 
Handbook 4000.1 II.A.1.a.iii(B)(3)(a) is available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

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.