What fees may a Mortgagee charge for processing a partial release of security?

The Mortgagee may charge to the Borrower reasonable and customary costs, up to the amounts listed in Handbook 4000.1, Appendix 3.0, involved in processing of the following modifications of the mortgaged Property:

  • partial releases
  • condemnation
  • order of taking
  • subordination or consent to Easement
  • lot line dispute/adjustment
  • subdivision consent
  • consent to change in covenants and restrictions

For policy information see Handbook 4000.1 III.A.1.j.iii(C) 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-05242