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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 118723
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I am a licensed mortgage broker in the state of. I have

Customer Question

I am a licensed mortgage broker in the state of washington. I have refinance loan documents sitting at an escrow company for my borrower to sign. There is a private lien holder in 1st position that we are paying off who is refusing to issue a current payoff to the closing agent. Is demanding that we move the closing to another closing agent. There is a 2nd lien holder who happens to be the LPO of the closing agent the 1st lien holder is demanding we use. No where in the loan documents does it state that the lien holder can direct where the closing will take place. Where can I find documented proof that this is illegal and unethical?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
RESPA allows the buyer or the lender to select the settlement agent. The pri***** *****en holder has no legal rights in any law to demand using their own settlement agent. In fact, if the primary lender is going to be paid off they cannot refuse to release the lien and issue a release, that would be an unfair and deceptive business practice as is refusing to issue a pay off amount to try to coerce the buyer to go to another settlement agent. This would be under the Unfair and Deceptive Practices Act and you need to send this lender a letter that their refusal to honor a valid request for payoff is an unfair and deceptive practice and you will report this to the WA Banking Commission as well as the WA Attorney General for their unfair and deceptive practice, since there is no law in WA or under RESPA that would allow them to refuse to give such information to the borrower or their agent upon demand.