206.32—No outstanding unpaid obligations.
In order for a mortgage to be eligible under this part, a mortgagor must establish to the satisfaction of the mortgagee that:
(a)
After the initial payment of loan proceeds under § 206.25(a), there will be no outstanding or unpaid obligations incurred by the mortgagor in connection with the mortgage transaction, except for repairs to the property required under § 206.47 and mortgage servicing charges permitted under § 206.207(b); and
(b)
The initial payment will not be used for any payment to or on behalf of an estate planning service firm.