The Administration may make a direct mortgage loan to a household with income at the limits established in Regulation .04D(1) of this chapter: For an eligible residence located in an eligible project as described in Regulations .15—.19 of this chapter; For a household that has a disabled member who will reside in the dwelling; For an emergency housing need as determined by the Secretary; For settlement and down payment costs; or That is made in conjunction with a loan funded with State appropriated funds if the State loan comprises at least 20 percent of the total amount loaned to the borrower. Processing of a direct mortgage loan may be initiated by submission of a standard form of application prescribed by the Administration accompanied by: A nonrefundable application fee in an amount determined by the Administration from time to time to be used to offset the cost of processing and appraisal and credit report fees; and Any documents, affidavits, or information that the Administration requires. The Administration may prescribe procedures for evaluating applicants for direct mortgage loans. The Administration may prescribe procedures and requirements for closing mortgage loans, including the following: Only title insurance companies authorized to do business in the State, attorneys acting on behalf of these title insurance companies, or attorneys authorized by the Administration and the Office of the Attorney General may close mortgage loans; Reasonable and customary amounts for the following items may be collected from the borrower: Recording fees and recording and transfer taxes or other charges incident to recordation; Credit report and appraisal, which are normally covered by the application fee; Required survey charges; Title examination and title insurance; and Other charges or fees authorized by the Administration, including points or origination fees; The mortgagor shall pay at closing a sum that, together with monthly expense payments, will pay all ground rents, taxes, assessments, insurance premiums, and condominium or homeowners association fees when due and payable; All taxes and assessments against the property that are due and payable shall be paid at or before closing; Before closing, the title insurance company shall issue its preliminary binder in favor of the Administration as mortgagee, with a title insurance policy being issued at closing in accordance with the binder.