---
kind: "section"
citation: "24 C.F.R. § 200.81"
title: "24"
number: "200.81"
heading: "Disbursement of mortgage proceeds."
url: "https://uscodex.org/cfr/24/200.81"
---

# §200.81. Disbursement of mortgage proceeds.


The mortgagee shall be obligated, as a part of the mortgage transaction, to disburse the principal amount of the mortgage to the:

- (a) Mortgagor or mortgagor's account;
- (b) **Mortgagor's creditors for the mortgagor's account, subject to the mortgagor's consent.**

## Notes

### Source

Source: 61 FR 14399, Apr. 1, 1996, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1702-1715z-21; 42 U.S.C. 3535(d).

### Source

Source: 36 FR 24467, Dec. 22, 1971, unless otherwise noted.