Mortgagees must consider the comparative effects of their elective servicing actions, and must take those appropriate actions which can reasonably be expected to generate the smallest financial loss to the Department. Such actions include, but are not limited to, deeds in lieu of foreclosure under Sec. 203.357, pre-foreclosure sales under Sec. 203.370, partial claims under Sec. 203.414, assumptions under Sec. 203.512, special forbearance under Sec. Sec. 203.471 and 203.614, and recasting of mortgages under Sec. 203.616. HUD may prescribe conditions and requirements for the appropriate use of these loss mitigation actions, concerning such matters as owner-occupancy, extent of previous defaults, prior use of loss mitigation, and evaluation of the mortgagor's income, credit and property. [59 FR 50145, Sept. 30, 1994, as amended at 61 FR 35019, July 3, 1996]