---
kind: "section"
citation: "24 C.F.R. § 251.3"
title: "24"
number: "251.3"
heading: "Case-by-case conversion to full insurance."
url: "https://uscodex.org/cfr/24/251.3"
---

# §251.3. Case-by-case conversion to full insurance.


Upon the request of a coinsuring lender, the Commissioner may endorse a coinsured Mortgage for full insurance, effective as of the date of such endorsement, if the Commissioner is satisfied that:

- (a) Continuing the Mortgage under coinsurance could jeopardize the lender's viability and ability to service its remaining portfolio of coinsured Mortgages;
- (b) The lender has made reasonable efforts to work out any Mortgage default consistent under [24 CFR 251.811 (1990)](/cfr/24/251.811.md?p=1990), but the remedies available to the lender have not been adequate to reinstate the Mortgage;
- (c) The conversion would be less costly to HUD than if the Mortgage remained coinsured;
- (d) The lender has paid HUD the fee set forth through Federal Register notice; and
- (e) The lender agrees to give the Commissioner written notice under [24 CFR 207.258](/cfr/24/207.258.md) of its intent to file an insurance claim upon the Commissioner's endorsement of the Mortgage for full insurance.

## Notes

### Amendments

[61 FR 49038, Sept. 17, 1996]

### Authority

Authority: 12 U.S.C. 1715b, 1715z-9; 42 U.S.C. 3535(d).

### Amendments

[61 FR 49038, Sept. 17, 1996]