---
kind: "section"
citation: "24 C.F.R. § 203.343"
title: "24"
number: "203.343"
heading: "Partial release, addition or substitution of security."
url: "https://uscodex.org/cfr/24/203.343"
---

# §203.343. Partial release, addition or substitution of security.

- (a) Except as provided in [§ 203.389(n)](/cfr/24/203.389.md?p=n), a mortgagee shall not release the security or any part thereof, while the mortgage is insured, without the prior consent of the Commissioner.
- (b) A mortgagee may, with the prior consent of the Commissioner, accept an addition to, or substitution of, security for the purpose of removing the dwelling to a new lot under the following conditions:
  - (1) **The mortgagee obtains a good and valid first lien on the property to which the dwelling is removed.**
  - (2) **All damages to the structure are repaired without cost to HUD.**
  - (3) The property to which the dwelling is removed is in an area known to be reasonably free from natural hazards or, if in a flood zone, the mortgagor will insure or reinsure under the National Flood Insurance Program or obtain equivalent private flood insurance coverage as defined in [§ 203.16a](/cfr/24/203.16a.md).
- (c) A mortgagee may, without the prior consent of the Commissioner, accept an addition to, or substitution of, security for the purpose of removing the dwelling to a new lot under the following conditions.
  - (1) The dwelling has survived an earthquake or other disaster with little damage, but continued location on the property might be hazardous.
  - (2) **The conditions stated in paragraph (b) of this section exist.**
  - (3) Immediately following the emergency removal the mortgagee notifies the Commissioner of the reasons for removal.

## Notes

### Amendments

[41 FR 49735, Nov. 10, 1976, as amended at 87 FR 70743, Nov. 21, 2022]

### Authority

Authority: 12 U.S.C. 1707, 1709, 1710, 1715b, 1715z-16, 1715u, and 1715z-21; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

### Source

Source: 36 FR 24508, Dec. 22, 1971, unless otherwise noted.

### Amendments

[41 FR 49735, Nov. 10, 1976, as amended at 87 FR 70743, Nov. 21, 2022]