During a Deferral Period, no funds of any kind may be disbursed, even if funds remain in a Life Expectancy Set-Aside.
For more information see Mortgagee Letters 14-21 and 2016-10 and the attached revised HECM Financial Assessment and Property Charge Guide available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee