Data / Federal rules / 2024-29390

Disbursing Multifamily Mortgage Proceeds: Permitting Mortgagees To Disburse Mortgage Proceeds With Mortgagor-Provided Funds

The Housing and Urban Development Department published this final rule in the Federal Register on December 13, 2024. It took effect on January 13, 2025.

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What the agency says

When funds provided by a mortgagor to a mortgagee are not fully disbursed with the initial advance of the insured mortgage proceeds, this final rule permits mortgagees to disburse up to 1 percent of the mortgage amount initially endorsed for insurance before requiring that the funds provided by the mortgagor be disbursed in full. This change to HUD's requirements removes unusual and burdensome mortgage servicing practices that may result from pooling mortgages into mortgage-backed securities guaranteed by the Government National Mortgage Association prior to the funds provided by the mortgagor being disbursed in full. This final rule adopts HUD's August 6, 2024, proposed rule with only minor, non-substantive revisions.

Key facts

Document number: 2024-29390
Type: Final rule
Action: Final rule
Agency: Housing and Urban Development Department
Published: December 13, 2024
Takes effect: January 13, 2025
Dates: Effective January 13, 2025.
Docket: Docket No. FR-6423-F-02
Regulation ID (RIN): 2502-AJ72
Code of Federal Regulations: 24 CFR 200
Topics: Administrative practice and procedure; Claims; Equal employment opportunity; Fair housing; Housing standards; Lead poisoning; Loan programs-housing and community development; Mortgage insurance; Organization and functions (Government agencies); Penalties; Reporting and recordkeeping requirements; Social security; Unemployment compensation; Wages
Pages: 5

The document on federalregister.gov PDF

Other documents from the Housing and Urban Development Department

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Section 3 Benchmarks for Creating Economic Opportunities for Low- and Very Low-Income Persons and Eligible Businesses 2026-20374	Final rule	Oct 5
Section 108 Loan Guarantee Program: Announcement of Fee To Cover Credit Subsidy Costs for FY 2027 2026-19743	Final rule	Sep 28
Revising HUD's Noise Abatement and Control Regulations; Correcting Amendment 2026-16967	Final rule	Aug 20
HUD's Implementation of the Fair Housing Act's Disparate Impact Standard; Amendments to HUD's Title VI Regulations 2026-16228 · significant	Proposed rule	Aug 10
Rescission of Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard 2026-13939 · significant	Proposed rule	Jul 10
Revising the Definition of “Manufactured Home” to Lower Housing Costs 2026-11851	Proposed rule	Jun 12
Revising HUD's Noise Abatement and Control Regulations 2026-11849	Final rule	Jun 12
Regulation for Federal Financial Assistance 2026-10817	Proposed rule	May 29

Everything from the Housing and Urban Development Department · Rules on administrative practice and procedure · Rules on claims · Rules on equal employment opportunity · Published in December 2024

Read from the Federal Register API, last updated 2026-10-24. The document on federalregister.gov is the official record; dates and dockets can change through later corrections. Free to reuse with credit to SpecStream under CC BY 4.0.