Q: I just found out that my builder is not licensed. His best friend let him use their LLC to get the building permit.

A: Based on the information you provided, there are several potential legal issues and conflicts of interest that may warrant further investigation and possibly legal action:

1. Unlicensed contractor: If your builder is not properly licensed, they may be operating illegally. This could be grounds for legal action, especially if their lack of licensing has led to subpar work or other issues.

2. Misuse of LLC: If the builder used their friend's LLC to obtain the building permit without proper authorization or disclosure, this could be considered fraud.

3. Conflict of interest with the bank: If the owner of the LLC that was used to obtain the permit is also the owner of the bank that provided your construction loan, and this relationship was not disclosed to you, it raises serious concerns about a conflict of interest. The bank should have disclosed this relationship to you, as it could have influenced their decision to grant the loan.

4. Failure to disclose: If the builder, the LLC owner, and the bank failed to disclose these relationships and potential conflicts of interest, they may have violated disclosure laws and regulations.

Whether you have a potential lawsuit against the bank depends on various factors, such as the specific laws in your jurisdiction, the terms of your loan agreement, and the extent of the bank's involvement and knowledge of the situation.

I strongly recommend consulting with a licensed attorney who specializes in construction law and/or banking law. They can review the details of your case, advise you on your legal rights and options, and help you determine the best course of action, which may include filing a lawsuit against the bank and other involved parties.