QUESTION
Is it legal for a bank to sell a loan that is under investigation for mortgage fraud?
Asked on Dec 29th, 2013 on Foreclosures - California
More details to this question:
My bank forged mine and my wife's signature on a loan modification in 2007 while I was militarily deployed, it is currently under investigation in their fraud department. A week after I brought this up with them, they sold my loan to another bank. Is it legal for them to do this?
2 ANSWERS
I don't see any legal reason for not being allowed to sell the loan. The original lender is going to have to answer for any fraud that is discovered regardless of who owns the loan. You should not rely on the bank's internal investigation. You should report the matter to the authorities. Here is a link to a web site with information: http://www.occ.gov/topics/consumer-protection/fraud-resources/index-fraud-resources.html In any case, if the original lender is engaging in this type of fraud, you are probably better off with your loan being held by a different lender. The terms of your loan do not change. Banks frequently resell their customers loans and there is generally no downside to the customer.
Answered on Jan 02nd, 2014 at 3:38 PM
Yes they can sell your loan.
Answered on Jan 02nd, 2014 at 2:05 PM