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.

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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.

Answered on 12/02/07, 11:06 am

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