FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. TITLE II INSURED HOUSING PROGRAMS REVERSE MORTGAGES > 6. Closing — d. Disbursement of HECM Proceeds

hud-4000-1-ii-d-disbursement-of-hecm-proceeds

HUD effective date: 04/29/2024 · section II.B.7 · Handbook 4000.1

FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Disbursement of HECM Proceeds (04/29/2024).

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Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT > B. TITLE II INSURED HOUSING PROGRAMS REVERSE MORTGAGES > 6. Closing — d. Disbursement of HECM Proceeds — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

FHA Single Family Housing Policy Handbook 4000.1, Part II — d. Disbursement of HECM Proceeds (04/29/2024)

Effective 2024-04-29 · publisher's stamp for this provision

d. Disbursement of HECM Proceeds (04/29/2024) The Mortgagee must verify that HECM proceeds are disbursed in the proper amount to the Borrower or to the debt holder. At closing, the HECM proceeds disbursed by the Mortgagee and any funds received from, or on behalf of, the Borrower must equal the total required for closing. The sum of all advances permitted under the HECM must not exceed the Principal Limit. The Borrower may bring available funds to closing to bring the sum of all anticipated advances within the Principal Limit. See Insufficient HECM Proceeds. i. Insufficient HECM Proceeds If there are insufficient funds for Disbursement, the Mortgagee must ensure the Borrower brings funds to closing to satisfy all obligations in excess of the Initial Disbursement Limit or Borrower’s Advance, which cannot exceed the Principal Limit. ii. Required Documentation The Mortgagee must obtain a signed and dated Payment Plan Exhibit from the Borrower.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09

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Source of record: https://claudeforcompliance.com/regs/hud-4000-1-ii-d-disbursement-of-hecm-proceeds/ · register hud-4000-1-ii-d-disbursement-of-hecm-proceeds · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.