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Press Release |
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WASHINGTON &endash; An aggressive campaign by the Department of Housing and Urban Development (HUD) to find homeowners due $70 million in prepaid FHA mortgage insurance premium refunds is winning praise from Consumers Union.
HUD's public information campaign was launched at a press conference today co-hosted by HUD Secretary Andrew Cuomo and Federal Trade Commission Chairman Robert Pitofsky. HUD aims to find approximately 100,000 former FHA borrowers who qualify for a portion of this $70 million account but have not yet collected their payments. The FTC also will be warning private businesses to avoid misleading consumers into thinking that the firms are acting on HUD's behalf in helping consumers pursue their refund claims.
"This effort should help make the holidays a lot cheerier for thousands of Americans this year," said Michelle Meier, CU's counsel of government affairs, who attended the press conference.
"HUD's public information campaign should increase the odds that these refunds will get to their rightful owners without anyone skimming off the top. This campaign is a terrific example of the federal government taking the goal of consumer protection and customer service seriously," Meier said.
Homeowners who prepay their FHA insured mortgage within the first seven years of the loan term usually have a right to a refund of a portion of the insurance premium they paid upfront. However, many former borrowers are unaware of their rights. According to HUD, eligible former borrowers targeted by this campaign are due an average refund check of $700.
Those who prepay their mortgage usually do so by refinancing their loan to get a more favorable interest rate or by selling their home.
HUD's public information campaign will include public service announcements as well as a special "refund" site on the government's web pages.
To find out if you are owed a refund and how to get it, consumers should call 800-697-6967. Consumers can also learn more about the refund program by checking out HUD's special web site at http://www.hud.gov/cgi-bin/refund2.
