January 10, 2011
As discussed in our last blog post, some FHA borrowers are eligible for refunds on their mortgage insurance premiums under the right circumstances. A small service industry has sprung up where third-party companies contact FHA mortgage holders, offering to locate these refunds for a fee.
The FHA has hired a company called Immediate System Resources to locate FHA loan holders the government owes money to, but there is no fee. In fact, FHA borrowers never have to pay to get information about or payment from the FHA connected to mortgage insurance premium refunds.
All a homeowner needs to do is check the FHA list. If your name is on the list, simply call (800) 697-6967 for more information. For best results, have your FHA case number handy when you make the call.
The FHA has issued a warning to consumers about questionable practices connected with FHA mortgage insurance premium refunds, tracers and third party companies offering to help borrowers get their refund in exchange for a fee. The FHA loan official site says, “You should be careful about any literature or solicitations stating that a change in HUD’s, FHA’s or the government’s policy will prevent you from receiving your refund and that you should call their office immediately.”
The FHA reports some third party companies are telling homeowners with FHA mortgages that in order to qualify for an FHA refund, the borrower must refinance their home loans. Beware any third party contact offering you a large refund in exchange for refinancing. According to the FHA:
“Please be advised that the Department does not sponsor a Third-Party Tracer Program. Third-party tracers are independent business enterprises involved in locating homeowners who may be entitled to a Federal Housing Administration (FHA) single family mortgage insurance premium refund or distributive share payment.”
The government has no arrangements with third party tracers. The only company authorized to contact you on the FHA’s behalf is
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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