bank loan lump sum payment

[bai-ka]

hi, looking for some advice.

my relative took bank home loan many years ago.
now see inside CPF got enough to pay finish one go.
but the bank say must get a lawyer and give a form that say
"we will inform our solicitor to apply for the CPF monies".

my question is do we really need to hire a lawyer?
why want to pay back the bank also so mafan one.
issit CPF rules or the bank rules?

thanks in advance.