- 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.
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 email@example.com 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