The Salinases sued their mortgage lender Norwest for mishandling a construction loan. Norwest failed to obtain lien waivers from subcontractors before releasing loan funds and didn't properly supervise the construction process. The court found Norwest liable under Texas's consumer protection law and awarded damages. This matters to subcontractors because it shows lenders can be held responsible when they don't follow proper procedures to protect your lien rights.
Always provide lien waivers to the lender before they disburse funds—lenders have a duty to collect them, and if they don't, they may be liable for your unpaid claims
Lenders must supervise construction loans properly, including verifying that subcontractors are paid before releasing the next draw—poor oversight can expose them to liability
Document everything: if a lender fails to obtain waivers or disburses funds without proper oversight, you may have a claim against them in addition to your claim against the contractor