Legal Question in Consumer Law in North Carolina

mortgage lending practices

I applied for a mortgage through a mortgage company, met all their financial criteria, got an appraisal by an accepted appraiser. The mortgage company quoted me a rate which they raised on the preliminary paperwork. We protested and they reduced it to the original amount saying they were ''doing us a favor''. Then they said that our appraisal was being ''reviewed''. Afterwards they denied the loan saying that the appraised amount they came up with was below our current amount borrowed through another bank and over $100,000 less than the amount from our appraisal. They used comps from stick built houses one of which was 30 yrs old. Our house is a log home and is less than 3 yrs old. Can they legally deny us on those grounds? What NC agency regulates them and would accept a complaint from me?


Asked on 3/30/04, 11:57 am

1 Answer from Attorneys
Jim Griffin The Law Office of James L. Griffin

Re: mortgage lending practices

They can deny you on any grounds-except race. No company has to do business with anyone even if you meet the criteria. Get another appraiser or get another mortgage lending company. You can complain to the Attorney General. However, the mortgage company appears to be well within their rights to deny you a loan.

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Answered on 3/30/04, 2:03 pm


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