24 CFR § 203.432 - Effect of sale of insured mortgage.

---
identifier: "/us/cfr/t24/s203.432"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 203.432 - Effect of sale of insured mortgage."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "203.432"
section_name: "Effect of sale of insured mortgage."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "B"
subchapter_name: "MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES"
part_number: "203"
part_name: "SINGLE FAMILY MORTGAGE INSURANCE"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
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)."
regulatory_source: "36 FR 24508, Dec. 22, 1971, unless otherwise noted."
cfr_part: "203"
---


# 203.432 Effect of sale of insured mortgage.

When an insured mortgage is sold to another approved mortgagee, the buyer shall thereupon succeed to all the rights and become bound by all the obligations of the seller under the contract of insurance and the seller shall be released from its obligations under the contract, provided that the seller shall not be relieved of its obligation to pay mortgage insurance premiums until the notice required by § 203.431 is received by HUD.

[45 FR 27929, Apr. 25, 1980]