Bad or OK Mortgage Lending Practice?

We have a mortgage with Quorum Federal Credit Union (www.quorumfcu.org) and would like to refinance with a different lender who is offering better rates ... but when we requested that the loan be assigned to the new lender in order to reduce our closing costs, Quorum's attorney has written to us stating, "While Quorum certainly understands your desire to have this mortgage assigned to a new lender, Quorum does not give an assignment in lieu of a satisfaction when a loan is paid off. I have looked at this issue before and there is no legal requirement for a lender to issue an assignment in lieu of a satisfaction." Is this a reasonable or unreasonable business practice? Is this good or bad customer relations? Feedback please!