CFR > Title 24 - Housing and Urban Development > SUBTITLE B—Regulations Relating to Housing and Urban Development > CHAPTER II—OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (parts 200 to 291) > SUBCHAPTER B—MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES (parts 201 to 266) > PART 206—HOME EQUITY CONVERSION MORTGAGE INSURANCE > SUBPART B—Eligibility; Endorsement (§206.9 to §206.53) > 206.29—Initial disbursement of mortgage proceeds.

206.29—Initial disbursement of mortgage proceeds.

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.

Code of Federal Regulations

[64 FR 2987, Jan. 19, 1999]