24 CFR § 242.25 - Mortgage form and disbursement of mortgage proceeds.

---
identifier: "/us/cfr/t24/s242.25"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 242.25 - Mortgage form and disbursement of mortgage proceeds."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "242.25"
section_name: "Mortgage form and disbursement of mortgage proceeds."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "B"
subchapter_name: "MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES"
part_number: "242"
part_name: "MORTGAGE INSURANCE FOR HOSPITALS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1709, 1710, 1715b, 1715n(f), and 1715u; 42 U.S.C. 3535(d)."
regulatory_source: "72 FR 67546, Nov. 28, 2007, unless otherwise noted."
cfr_part: "242"
---


# 242.25 Mortgage form and disbursement of mortgage proceeds.

(a) *Mortgage form.* The mortgage shall be:

(1) Executed on a form approved by HUD for use in the jurisdiction in which the property covered by the mortgage is situated; the form shall not be changed without the prior written approval of HUD.

(2) Executed by an eligible mortgagor.

(b) *Disbursement of mortgage proceeds.* The mortgagee shall be obligated, as a part of the mortgage transaction, to disburse the principal amount of the mortgage to (or for the account of) the mortgagor or to his or her creditors for his or her account and with his or her consent.