How To Make a Complaint Against Your Mortgage Lender or Mortgage Broker

Federal and state laws regulate mortgage companies. Mortgage lenders must follow certain rules to ensure you get fair treatment and aren’t taken advantage of. Unfortunately, most consumers don’t know their consumer protection rights.

Understand your legal rights to avoid scams and unfair lender practices. If you have a complaint against your mortgage banker or lender, talk to a consumer protection lawyer.

What Are Your Financial Rights?

A variety of federal and state laws protect consumers’ financial rights. According to the Consumer Financial Protection Bureau (CFPB), lenders or brokers can’t require you to provide documents or proof just to get a loan estimate. If you approve, they can do a credit check with your name, contact information, and Social Security number. But if you just want an estimate, they can’t require a W-2 or other documents.

Mortgage brokers and lenders must provide certain disclosures to borrowers. This includes information about the mortgage lending:

• Interest rates
• Closing costs
• Fees
• Penalties
• Payment terms
• Other terms and conditions

Some mortgage costs can change between the loan estimate and the final costs at closing. However, there are limits to how much loan costs can increase. If a lender or broker has violated any applicable laws, certain legal remedies are available.

What Are Common Mortgage Loan Complaints?

People have many different complaints about their mortgage loan originators and providers. It goes beyond high interest rates and fees. Some mortgage companies use deceptive practices to take advantage of consumers, including:

• Making false statements about offering a mortgage loan
• Charging fees for services the mortgage provider never provided
• Performing illegal actions to collect a loan balance
• Making an electronic fund transfer after the account is closed
• Failing to terminate mortgage insurance on time

Another complaint involves illegal mortgage discrimination. Under the Fair Housing Act, lenders can’t discriminate against a borrower based on:

• Race
• National origin
• Religion
• Sex
• Family status
• Disability

What Can I Do if the Lender Is Using Deceptive Mortgage Practices?

If you think your mortgage lender or broker is using deceptive business practices, document the problem. Keep copies of emails, paperwork, and other documentation. Keep a log of phone calls, including who you talked to and when you made the call.

You can try to resolve problems directly with the lender or broker. If the mortgage agent can’t help, ask for a manager. If the lender won’t communicate with you or help you resolve the issue, you can file a complaint with your state attorney general or federal government agency.

Where Do You File a Complaint Against the Mortgage Lender?

Filing your complaint depends on the type of complaint. For example, if you have a complaint about discrimination in the mortgage lending process, you can report it to the Department of Housing and Urban Development (HUD).

For complaints about financial products and services, contact the Consumer Financial Protection Bureau. Financial services include credit cards, payday loans, and mortgages.

Can You File a Complaint Against a Financial Institution?

The Federal Deposit Insurance Corporation (FDIC) handles complaints about FDIC-insured state banks. These banks are not members of the Federal Reserve System. You can submit a complaint about your financial institution.

The Federal Trade Commission (FTC) handles complaints about most non-bank lenders, such as mortgage and finance companies and state credit unions. You can contact the FTC to file a complaint about your financial institution.

The Office of the Comptroller of the Currency (OCC) is a bureau of the U.S. Department of the Treasury. The OCC handles complaints about National Banks. Usually, these are banks that have “national” or N.A. in their name. You can also contact the OCC by mail, phone number, or fax.

The National Credit Union Administration handles complaints about National Credit Unions. NCUA is the regulator of Federal Credit Unions. Federal Credit Unions are credit unions with the word “federal” in the title or any credit union in Delaware, South Dakota, Wyoming, or Washington, DC.  File a formal complaint by using the NCUA form or contact them by website, mail, or phone.

Can a Consumer Protection Lawyer Help With Mortgage Fraud?

A mortgage represents a large investment for you and your family. Mortgage lender deception can cost you thousands of dollars or put your home at risk. Consider talking to a lawyer to help you resolve any disputes and protect your investment.

A lender that tricked you into taking a mortgage with higher rates and fees may have violated state and federal law. Some laws provide statutory damages for consumer protection violations. Your lawyer can document the violations and report them to federal regulators. Your lawyer can also file a lawsuit against the mortgage company to help you get your money back. For more information about your borrower rights, talk to a consumer protection lawyer.