Mortgage insurance payment after fire loss

Hi, I had a house fire and used the insurance companies "preferred contractor", 6 months later I had to terminate that contractor for failure breach of contract and failure to complete home in satisfactory condition. Basically, now I'm without a contractor and no contractor will touch until I reach an agreed amount with the prior contractor. I am trying to mitigate my damages by hiring my own subs and using a small GC, paying all materials, etc. Mortgage company has insurance money (over $200K), but they are asking for W9's, etc of subs. Can I pay upfront and require the mortgage company to release monies to me directly - since I am now funding entire project? Does mortgage company have the right to hold money after completion, per insurance estimate?