Underwriting Manual: Mortgages Executed By Parties Not Receiving The Loan Proceeds

See Also

  • No references available.

Standard Exceptions

Bulletins

  • No references available.

Forms

  • No references available.
State Supplements

View state supplements to the national underwriting manual.

Table of Contents

Underwriting Manual Subtopic
12.36.1

In General

V 2

Mortgages, the proceeds of which are not being disbursed or applied to the account of those parties who execute the same, can be avoided by the mortgagors' creditors under both federal and state laws. The federal law is contained in those provisions of sections 547 and 548 of the Bankruptcy Code dealing specifically with transactions affecting creditors on the basis of fraud or preference.