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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.