---
kind: "section"
citation: "24 C.F.R. § 206.134"
title: "24"
number: "206.134"
heading: "Partial release, addition or substitution of security."
url: "https://uscodex.org/cfr/24/206.134"
---

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

- (a) 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 or replacing the dwelling with a similar or like kind on the existing lot under the following conditions:
  - (1) The mortgagee obtains a good and valid first lien on the property to which the dwelling is removed or the existing lot upon which the dwelling is rebuilt;
  - (2) All damages to the structure are repaired or all rebuilding of the structure is completed without cost to FHA; and
  - (3) The property to which the dwelling is removed or rebuilt is in an area known to be reasonably free from natural hazards or, if in a flood zone, the borrower 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) of this chapter.
- (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)](#b) of this section exist; and
  - (3) Immediately following the emergency removal the mortgagee notifies the Commissioner of the reasons for removal.

## Notes

### Amendments

[82 FR 7117, Jan. 19, 2017, as amended at 87 FR 70744, Nov. 21, 2022]

### Authority

Authority: 12 U.S.C. 1715b, 1715z-20; 42 U.S.C. 3535(d)

### Source

Source: 82 FR 7117, Jan. 19, 2017, unless otherwise noted.

### Amendments

[82 FR 7117, Jan. 19, 2017, as amended at 87 FR 70744, Nov. 21, 2022]