Legal Question in Civil Rights Law in Maryland
law suit
A loan officer of a Mortgage Company refers a client to a private investor because the MTg Comp. could not do the loan for the client. The Private Investor gives the borrower a short-term loan for $80,000.00 US Dollars, which was to be paid back with interest with in 3 to 4 weeks. The borrower takes the money and refuses to sign the corrected promissory note. Now it has been almost 6 months and the borrower did not make any payment. The private investor tried contacting him several times and tried meeting with him and the borrower refused to meet with the lender. Now the Investor is suing the loan officer who referred him the client and his mortgage company along with the borrower who took the money. Now question is did the private investor do the right thing by suing the loan officer and his mortgage company? Shouldn't he just file the suit against the Borrower only?
2 Answers from Attorneys
Re: law suit
Depends if the mortgage company or loan officer engaged in misconduct, agreed to properly document the loan, or otherwise acted so as to incur liability. They need to consult with counsel immediately.
Re: law suit
Unless the mortgage company/loan officer knew or should have known that the borrower was a bad risk and probably would not repay the loan or there were other leagally enforceable assurances by the mortgage company to the investor, it probably has no liability. However, there are many unkonwn facts and you should contact counsel.
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