source:
  type: guide
  id: hud-4000-1-ii-c-disbursement-of-mortgage-proceeds
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Disbursement
    of Mortgage Proceeds (01/24/2022)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Disbursement
    of Mortgage Proceeds (01/24/2022).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-c-disbursement-of-mortgage-proceeds-full
  canonical_id: hud-4000-1-ii-c-disbursement-of-mortgage-proceeds-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Disbursement
    of Mortgage Proceeds (01/24/2022)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — c. Disbursement
      of Mortgage Proceeds (01/24/2022)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'c. Disbursement of Mortgage Proceeds (01/24/2022) i. Standard
      for Disbursement of Mortgage Proceeds The Mortgagee must verify that Mortgage
      proceeds are disbursed in the proper amount to the Borrower and the seller,
      or in the case of a refinance transaction, to the debt holder. At closing, the
      Mortgage proceeds disbursed by the Mortgagee and the cash from the Borrower
      must equal the total Acquisition Cost or refinance cost. ii. Required Documentation
      for Disbursement of Mortgage Proceeds The Mortgagee must obtain the final acknowledged
      Closing Disclosure or similar legal document from the settlement agent signed
      by the Borrower. If the seller’s Closing Disclosure or similar legal document
      is provided separately, the Mortgagee must obtain from the Closing Agent a copy
      of the final Closing Disclosure provided to the seller to keep in the case binder.
      II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing
      Programs Forward Mortgages 7. Post-closing and Endorsement Handbook 4000.1 381
      Last Revised: 11/26/2025 7. Post-closing and Endorsement'
  judgment: false
