HUD Allows Mortgagees to Disburse 1% of Mortgage Proceeds Before Requiring Mortgagor Funds

Summary

The U.S. Department of Housing and Urban Development (HUD) has finalized a rule permitting mortgagees to disburse up to 1% of insured mortgage proceeds before requiring mortgagors to disburse all funds provided, aiming to reduce burdensome mortgage servicing practices.