When does a partial release of security require prior FHA approval?

The Mortgagee must obtain HUD approval for partial releases other than those meeting the requirements in Partial Releases from Condemnation Not Requiring HUD Approval (Section III.A.1.j.iii(A)).
 
Guidance for partial releases of security requiring HUD approval, including the following, can be found in Handbook 4000.1 III.A.1.j.iii(B):
  • Request process
  • HUD Review
  • Required documentation
  • Fee for partial release of security
Handbook 4000.1 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.


Topic Number: KA-03634