Ex says bank won't refinance without quit-claim deed?

My fiance and his wife divorced 6 years ago. Part of the divorce decree was regarding the house they own. The settlement states that she has the first right of refusal and that should they sell, they split the profit evenly; until one if these scenarios happens, they are each responsible for half the mortgage payments and repairs. She is now looking to refinance and told my fiance that according to her attorney, the initial refinance she applied for in February was denied because the bank wanted a quit-claim deed from him before they will approve. She has told him that she has to have that form from him before she can send in the refinancing paperwork. Is this even true? Shouldn't he be required to sign a quit-claim at closing, AFTER the refinancing is approved, not before??