QUESTION
Is it legal for a crediting company to not release a loan, when a consumer is refinancing through a different lender?
Asked on May 05th, 2012 on Consumer Law - Montana
More details to this question:
We have been trying to get a payoff amount and release of loan letter from our current lender. Our new lender has all the paperwork ready for signing, but they have been getting the run around from our current lender. Our current lender will not give us or our new lender the information we need. Is this a legal practice? I tried looking on the FTC site, but there is nothing there pertaining to our particular situation.
1 ANSWER
Mortgage Banking Law Attorney serving Peachtree Corners, GA
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Franzén and Salzano, P.C.
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Many states have laws governing when a lender must provide a payoff and how much they may charge to do so. While it is not clear the type of loan you are trying to refinance and the type of lender (bank or nonbank), I suggest that you start with lodging a complaint with the Montana Division of Banking and Financial Institutions. They will direct you to another regulator as appropriate. Best of luck in refinancing to a better servicer as well as better terms!
Answered on May 08th, 2012 at 6:00 PM