Can the bank change my insurance policy prior to an actual loan?
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Can the bank change my insurance policy prior to an actual loan?
I applied for a home equity loan. They turned me down on the original terms offering me alternative terms. Before I advised them of my decision, they called my insurance company and had my homeowner’s policy changed to show them as mortgagee I am told by the insurer that they used my husband’s name when they called to change the policy. Is this legal?
Asked on July 14, 2012 under Real Estate Law, Georgia
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
No, it is not legal and it is unethical and you should contact the state banking commission and report them as soon as you can. You should not do business with this lender at all. And call you insurance company and change the info back becusue the present lender will get insurance for you at an additional cost if they are not named as per the loan. Good luck.
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