Legal Question in Real Estate Law in Texas

Borrower's right to chose their lender

A borrower is having a home built. They have found a better deal through a mortgage company other that the mortgage company the builder was submitting their loan through. So the borrowers want to go through the mortgage company they found on their own. The builder is saying that they will not be able to uphold the contract if they don't use the lender they want them to use. Can they do this? Is there a law or bill recently passed that prevents this sort of practice?


Asked on 2/10/06, 1:28 pm

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

Re: Borrower's right to chose their lender

This conduct may violate RESPA, the Real Estate Settlement Procedures Act. Buyer should point this out to builder and see if builder doesn't back off.

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Answered on 2/10/06, 2:38 pm


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