You are right, this makes no sense. If you are paying the original payment to the previous lender, you need to find out and phone calls are not recommended. If the new loan closed the deed of trust should have been recorded and that would govern your rights; someone should check the County Recorder for the recorded document if you have not already obtained it. Similarly, the previous loan should have been reconveyed, but often that may take time. There is a procedure to force the reconveyance with some penalties attached, but that could require an attorney. You may not be getting credit on your new loan by paying the previous lender, and obtaining reimbursement could be difficult, so you should consult counsel immediately.