24 CFR § 200.81
Disbursement of mortgage proceeds
February 22, 2021
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.