+1 vote
My friend would like the money returned (needing a furnace) rather than applied to the loan.  The mortgage company says by law they cannot return it, but can only apply it to the loan.
asked Dec 31, 2017 in Conventional Loans by Dennis

1 Answer

+1 vote
Refund processing depends on the policy of the insurer. There is no law forbidding the issuance of a check for the overpayment. For instance, Radian issues refund checks directly to the loan servicer, per its policy. It sounds as though your friend's loan servicer prefers to apply the overpayment to the loan balance, but I can find no law requiring this. I would ask them to cite the specific law that applies, and push for an actual refund if they can't do this.
answered Dec 31, 2017 by GinaPogol (47,650 points)

Welcome to The Mortgage Reports Q&A Forum. Have your questions answered by experienced mortgage and real estate professionals.
515 questions
662 answers
883 users