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FHA Case#

I'm in the process of purchasing a house.  I originally started the loan process with a bank, nothing signed, but even the appraisal was ordered and a FHA loan was approved to me.  Then I decided to go with another bank.  Not knowing that I was going to get approved for basically the same loan, FHA (best option for my needs) the new bank approved me for an FHA loan.  Now the old bank refuses to transfer the FHA case # to my new bank.  They won't answer calls, emails.  This is delaying my purchase and I even have to pay penalties if I don't meet the closing deadline.  It's legal for a bank to refuse to transfer the case # to another bank?.  It's seem like if they are doing this on purpose just because I won't do business with them.  Can I take any legal action?

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Featured Answer by WalletPop's David Reed

 
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David Reed is WalletPop's Mortgage Expert 

If you haven't paid for the appraisal, they won't transfer it.  If you have paid for the appraisal they must transfer it.  It also depends on how far along your loan is with the other bank, some banks charge a 1% fee to transfer it if they have a complete file.

You can also call HUD at 1-877-234-2717 and complain.  In reality though, if you're locked in at the old bank you may want to stay there as rates have really come under pressure lately


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