24 C.F.R. § 206.29 Initial disbursement of mortgage proceeds.
Title 24 - Housing and Urban Development
Mortgage proceeds may not be disbursed at the initial disbursement or after closing (upon expiration of the 3-day rescission period under 12 CFR part 226, if applicable) except: (a) Disbursements to the mortgagor, a relative or legal representative of the mortgagor, or a trustee for benefit of the mortgagor; (b) Disbursements for the initial MIP under §206.105(a); (c) Fees that the mortgagee is authorized to collect under §206.31; (d) Amounts required to discharge any existing liens on the property; (e) An annuity premium, if the premium was disclosed as part of the total cost of the mortgage under the disclosures required by 12 CFR part 226; and (f) Funds required to pay contractors who performed repairs as a condition of closing, in accordance with standard FHA requirements for repairs required by appraisers. [64 FR 2987, Jan. 19, 1999]
Title 24: Housing and Urban Development
PART 206—HOME EQUITY CONVERSION MORTGAGE INSURANCE
Subpart B—Eligibility; Endorsement
Eligible Mortgages
§ 206.29 Initial disbursement of mortgage proceeds.
