If a case number has been canceled, and FHA insurance will be sought, the lender must fax a request to the appropriate HOC, requesting that the case number be reinstated to an active status.

Any FHA Approved Lender can request a transfer. HUD will not process request from BORROWERS. NOTES: If Originating Lender is out of business do not transfer case number.

Reasons Cancellation can be completed: An appraisal has not been completed and the borrower will not close the loan as an FHA Insured Mortgage. The FHA mortgage insurance will not be sought. The appraisal report has already expired.

The mortgagee clause or Certificate of Insurance for a Mortgagee is a form that names the entity that has financial interest in any piece of property. Typically, the mortgagee clause contains the name and address of the lender as well as the loan number.

Under the Uniform Standards of Professional Appraisal Practice (USPAP), an appraiser cannot re-address or transfer an appraisal to another party once prepared and delivered to another client. This must be done by the Original Transferring Financial Institution.

Transfer to: A Letter signed by the Borrower(s) specifically requesting that the FHA/VA case # be transferred to the lender named in this request is attached. Note: A “borrower's authorization form” is not acceptable for case transfers. There must be a signed specific. request letter attached.

“In cases where a Borrower has switched Mortgagees, the first Mortgagee must, at the Borrowers request, transfer the appraisal to the second Mortgagee within five business days.” The phrase, “at the borrower's request” is key--FHA loan rules say the appraiser is not automatically required to perform the transfer.