24 CFR 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;
(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 published on 2014-04-01
no entries appear in the Federal Register after this date.