How to File a Complaint Against a Mortgage Lender in California

Consumers wondering how to file a complaint against a mortgage lender should consider their state, federal, and legal options.

Mortgages & Mortgage Lenders: The Basics

A mortgage is a type of loan used to purchase a home and secured by the collateral of the purchased property. Due to the nature of this debt instrument, mortgages may be known as “liens against property” or “claims on property.”

Mortgages come in several forms, with terms ranging from five years to over 40 years. There are also varying interest rates, with traditional fixed-rate mortgages at a single interest rate over the life of the loan. Borrowers may also have interest-only mortgages or adjustable-rate mortgages which have an initial fixed interest rate which later fluctuates according to market interest. The most popular mortgages are 30 or 15 year fixed mortgages.

Borrowers may deal with several lenders and other companies while browsing mortgages and over the course of their loan’s life. When purchasing a home, borrowers may work directly with a mortgage broker who helps find the best offer for their clients. Borrowers may also interact with a loan servicer such as Quicken loans.

However, the mortgage may be originated from a bank or other company. The loan could later be sold to another lender or even to an investor such as Fannie Mae or Freddie Mac.

Although every borrower hopes that their mortgage experience will be smooth and without issue, they may end up having disputes with their lenders or loan servicers over billing issues, past-due payments, foreclosures, interest rates, or other issues.

How To File A Complaint Against a Mortgage Lender

Consumers who have a dispute with their mortgage lender have several options. If you’re wondering how to file a complaint against a mortgage lender in California, you may want to take these steps:

• File a complaint with your lender: If you have an issue with your lender, you will first want to make attempts to resolve the issue directly with the company. Most companies will have a dispute resolution process that they use. However, you may not be satisfied by this process – leading you to consider other options.
• Make a complaint on the Better Business Bureau: Although the BBB is a non-profit opposed to a regulatory authority, filing a complaint on the website could help you get a response from your mortgage company and can help share your experience with other consumers looking for real-life stories about lenders.
• File a complaint with California authorities: If your complaint with your lender hasn’t been resolved by internal processes, you can file a complaint on a state level with California housing authorities such as the Department of Financial Protection and Innovation (DFPI). The DFPI could help with violations of state law by companies with a DFPI license – including banks, mortgage lenders, and other mortgage companies. The DFPI accepts complaints both online and through the mail, though online complaints may receive a faster response.
• File a complaint with federal authorities: Consumers who have been subject to violations of the Truth in Lending Act, Equal Credit Opportunity Act, and the Real Estate Settlement Procedures Act can file a complaint with the Consumer Financial Protection Bureau (CFPB). Complaints under the Fair Housing Act could be filed with the Department of Housing and Urban Development (HUD). Other disputes with Fannie Mae, Freddie Mac, and the Federal Home Loan Banks may be filed with the Federal Housing Finance Agency. Further complaints involving unfair or deceptive business practices could be filed with the Federal Trade Commission.

Next Steps After Filing a Complaint

Even if you file a complaint with your local, state, or federal authorities, you may still struggle to resolve your dispute with your mortgage lender. In some cases, you lender’s actions may have been in violation of state and federal laws aiming to protect consumers from unfair business practices. If your bank violated these statutes, you could have a legal claim.

Can I File a Mortgage Lender Lawsuit?

Attorneys are currently investigating several banks for potential violations of state or federal law when it comes to handling consumer disputes. These disputes may have centered around billing issues, past-due payments, foreclosures, or interest rates. Banks and credit unions included in this investigation are:

• Bank of America
• Caliber Home Loans
• Capital One
• Fairway Independent Mortgage
• Freedom Mortgage
• HSBC
• Loan Depot
• Navy Federal
• PNC
• Quicken Loans
• Union Bank
• United Wholesale Mortgage
• US Bank
• Wells Fargo

If you are a California customer of one of these banks and had a dispute with your financial institution within the past year, you may be eligible to join this lawyer-led investigation. You could qualify to take legal action and recover compensation.