Legal Question in Banking Law in Virginia

Mortgage lending

We bought a house and closed on it

and the lender was unable to sell the

loan to an investor because of the

meltdown and the tightning of the

market.

Weve made all our payments either

on time or before time and have

tried to enjoy our new home.

The lendor however, keeps insisting

that we need to refi to a different

mortgage product and have

threatened audit amongst other

things. I think its harrassment and I

wanted to get an opinion as to the

law in this matter. This has been

going on for 4 months and has

caused many sleepless nights.


Asked on 12/01/07, 6:47 am

2 Answers from Attorneys
Daniel Press Chung & Press, P.C.

Re: Mortgage lending

The fact that the lender can't sell the loan on the secondary market does not mean that they have any recourse against you - assuming you did nothing wrong in obtaining the loan, you have a valid loan, and it is due and payable in accordance with its terms. I doubt the loan documents give the lender the right to an audit, but you may want to have a lawyer review them to be sure. In any event, what has happened may (or may not) be a violation of the Fair Debt Collection Practices Act and/or the Truth in Lending Act, so you may want to consult a lawyer on that as well.

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Answered on 12/02/07, 11:06 am
Robert Strupp Robert J. Strupp,Attorney at Law, PLC

Re: Mortgage lending

You should consider consulting with an attorney. Is it the lender insisting on a refinance, or a mortgage broker?

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Answered on 12/01/07, 8:13 am


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