A CONSUMER GUIDE TO
MORTGAGE-RELATED COMPLAINTS
Real Estate MATTERS
A CONSUMER GUIDE TO MORTGAGE-RELATED
COMPLAINTS
INTRODUCTION ................................................................1
WHO IS MY LENDER? ........................................................ 1
WHAT SHOULD I DO IF I HAVE A DISPUTE
WITH MY LENDER? ........................................................... 1
WHAT SHOULD I DO IF I HAVE A COMPLAINT
AGAINST MY LENDER? ...................................................... 2
Banks ............................................................................. 2
Savings and Loans ............................................................ 2
State Licensed Banks and Savings and Loans ....................... 3
Credit Unions ................................................................... 3
Industrial Loan Companies ................................................. 3
Mortgage Bankers, Lenders, and Brokers ............................. 3
WHO IS MY LOAN SERVICER? ............................................ 3
WHAT SHOULD I DO IF I HAVE A DISPUTE
WITH MY LOAN SERVICER? ................................................ 4
WHAT SHOULD I DO IF I HAVE A COMPLAINT
AGAINST MY LOAN SERVICER? ........................................... 5
WHO WAS MY MORTGAGE BROKER? ................................... 6
WHAT SHOULD I DO IF I HAVE A COMPLAINT
AGAINST MY MORTGAGE BROKER? ..................................... 6
WHO CAN I CONTACT IF I HAVE OTHER
MORTGAGE-RELATED COMPLAINTS? ................................... 6
HOW DO I AVOID MORTGAGE-RELATED
PROBLEMS? ..................................................................... 7
GOVERNMENT AGENCY CONTACT
INFORMATION .................................................................. 8
A Consumer Guide to Mortgage-Related Complaints 1
INTRODUCTION
Even after you have done your due diligence as a consumer in
obtaining a home loan, unexpected issues may arise. It is often
difcult to determine what course of action to take and whom to
contact.
The purpose of this booklet is to provide basic information about
loan servicers, lenders, mortgage brokers, complaints, and contacts.
WHO IS MY LENDER?
Your lender is the person/entity that loaned you the funds you
borrowed and has a mortgage on your property to secure the loan
repayment. In California, your promise to repay the lender is ordinarily
in the form of a promissory note, and the mortgage is ordinarily in
the form of a deed of trust that is recorded as a lien against your
property to act as security for payment. Your lender appears as the
beneciary on the deed of trust.
As you are going through the process of getting your loan, you
will know who your lender is by the various disclosures that are
provided to you. Lenders can be private individuals, mortgage
brokers, mortgage bankers, credit unions, banks, etc. There are
different advantages to each type of lender, so – before you get the
loan - make certain you carefully select which lender will be most
appropriate and benecial for your situation.
WHAT SHOULD I DO IF I HAVE A DISPUTE WITH MY
LENDER?
Most lender disputes have to do with loan servicing, which is
discussed later. However, if you have a dispute with the lender,
attempt to contact the lender directly.
Many lenders have a toll-free customer service number. Call that
number and explain the problem. Be sure to have your loan number
and pertinent documents in hand before calling. Document the call
by writing down to whom you spoke, the date and time of the call,
and what was promised. If the customer service representative is
unable to immediately resolve the problem, be sure to ask for follow-
up action and ask when you might expect a call-back or a timeframe
in which the problem will be resolved. After speaking with a customer
service representative, or if you are unable to successfully contact
2 A Consumer Guide to Mortgage-Related Complaints
the lender by telephone, send a letter to your lender. In your letter,
state what the problem is and what you wish the lender to do about
it; make sure you are specic. Keep a copy of your letter. Conrm
in writing any telephone conversations with the lender. If you send
documents, make certain they are copies and not the originals.
WHAT SHOULD I DO IF I HAVE A COMPLAINT
AGAINST MY LENDER?
Each type of lender must abide by lending laws, but oversight and
enforcement of those laws are accomplished through different
entities.
If you believe your lender violated usury laws (illegal interest rates),
you should contact an attorney, as usury laws are quite complex. You
can also le a complaint with the government agency that oversees
the lender. Remember: do not send original documents with the
complaint.
If your lender is a private person or entity (that is, not a broker, banker,
or nancial institution), you should consult with an attorney, as there
is likely no government agency that oversees that private lender.
If your lender is not a private person or entity, you should contact the
government agency that oversees that lender. That agency will be
able to determine if it has the ability to intervene in the dispute, help
remedy the problem, or take appropriate action. If the government
agency does not have the ability to do any of the foregoing, you
should consult an attorney.
The following is a list of different types of lenders and their overseeing
government agencies (contact information for each can be found at
the end of the booklet):
Banks
• If the name of your bank contains the word “National” or has
the initials “N.A.” after it, it is a national bank. Contact the
federal Ofce of the Comptroller of Currency.
Savings and Loans
• If the name of your savings and loan contains the word
“Federal” or the initials “F.S.B.” or “F.A.” after it, it is a federal
A Consumer Guide to Mortgage-Related Complaints 3
savings and loan association or bank. Contact the Ofce of
Thrift Supervision.
State-Licensed Banks and Savings and Loans
• If the bank or savings and loan is licensed by the state it is
not or may not be regulated by the federal agencies. Contact
the California Department of Financial Institutions.
Credit Unions
• If the name of your credit union contains the word “Federal”,
it is a federal credit union. Contact the National Credit Union
Administration.
• If not, it is a state-licensed credit union. Contact the California
Department of Financial Institutions.
Industrial Loan Companies
• If your lender is an industrial loan company, also known as
“thrift and loan”, it is state-licensed. Contact the Department
of Financial Institutions.
Mortgage Bankers, Lenders, and Brokers
• If your lender does not fit any of the above, go to the
Department of Real Estate’s web site at www.dre.ca.gov.
Click on the icon for California Real Estate and Financial
Services License Information to obtain license information
for the lender.
• Your lender may be a mortgage banker, California nance
lender, or residential mortgage lender. If so, it is state-
licensed as a banker or lender. Contact the Department of
Corporations.
• A lender may be a real estate broker and licensed by the state.
Contact the Department of Real Estate.
WHO IS MY LOAN SERVICER?
The person who collects your loan payments is often referred to as the
loan servicer or authorized servicer. A borrower generally does not
have the ability to select the loan servicer; the servicer is selected by
4 A Consumer Guide to Mortgage-Related Complaints
the lender. Sometimes the lender is the loan servicer, other times, the
servicing is contracted to a third-party, and occasionally, the mortgage
broker services the loan. Note that if the servicing responsibility for
a loan is to be (or has been) transferred, both the current and new
servicer must notify the borrower of the change and its effective date.
In addition to collecting your loan payments, your loan servicer will
also impose charges if your payment is late, if the promissory note
contains such a provision. For some home loans, the law allows a
late charge of up to 10% per installment. It is very important to make
all your payments and to make them on time.
Your loan servicer is also responsible for releasing the lien when
your loan is paid in full, pursuing foreclosure if you are delinquent in
payments, and paying property taxes and insurance through your
escrow or impound account (if applicable).
Your lender will provide information about your loan servicer. You
may receive payment coupons or monthly notices. Your servicer will
be the entity to whom you are sending loan payments.
WHAT SHOULD I DO IF I HAVE A DISPUTE WITH MY
LOAN SERVICER?
As with any disputes with your lender, if you have a disagreement with
the authorized servicer about your loan, contact your loan servicer
to try to resolve the problem.
Most loan servicers have a toll-free, customer service number. Call
that number and explain the problem. Be sure to have your loan
number and pertinent documents in hand before calling. Document
the call by writing down to whom you spoke, the date and time of the
call, and what was promised. If the customer service representative is
unable to immediately resolve the problem, be sure to ask for follow-
up action and ask when you might expect a call-back or a timeframe
in which the problem will be resolved. After speaking with a customer
service representative, or if you are unable to successfully contact
the servicer by telephone, send a letter to the servicer, at the address
for correspondence indicated on your monthly statements. In your
letter, state what the problem is and what you wish the servicer to
do about it. Make sure you are specic. Keep a copy of the letter.
If your payment wasn’t credited, give the account number, amount,
date, and number of the check. Do not send your original documents
A Consumer Guide to Mortgage-Related Complaints 5
such as canceled checks. Keep all the originals and send copies
with your letter. Conrm in writing any telephone conversations with
the servicer.
The Real Estate Settlement Procedures Act (RESPA) requires the
servicer to acknowledge your request within 20 business days and
to try to resolve the problem within 60 business days. You may have
certain rights such as the right to le a civil lawsuit against the servicer
if the service violates the RESPA requirements.
If you are facing nancial hardship, are facing foreclosure, need to
sell your property, or the like, the authorized servicer and/or your
lender may be the appropriate contact. For more information about
nancial hardship and foreclosure, please read the Department of
Real Estate’s:
A Homeowner’s Guide to Foreclosure in California which is available
at www.dre.ca.gov.
Regardless of the nature of the loan servicing problem, it is important
to continue to make your scheduled monthly payments on time in
order to avoid a potential default on the loan and risking foreclosure.
WHAT SHOULD I DO IF I HAVE A COMPLAINT
AGAINST MY LOAN SERVICER?
As with lenders, there are a variety of licenses or authorities under
which a loan servicer can service a home loan.
If correspondence to your servicer is not acknowledged or the
problem is not resolved within the time frames required by RESPA,
you may le a complaint with the U.S. Department of Housing and
Urban Development (HUD). You may also wish to consult an attorney
for possible civil remedies. A sample letter to your loan servicer can
be found at HUD’s web site at www.hud.gov/ofces/hsg/sfh/res/
reslettr.cfm.
The following is a list of government agencies overseeing servicers
(contact information for each can be found at the end of the booklet):
• If your lender is the loan servicer, follow the previous list for
lenders and their overseeing agencies.
6 A Consumer Guide to Mortgage-Related Complaints
• If y
our servicer is not the lender, it is likely licensed in California.
• To determine which agency, check the license status on the
Department of Real Estate's web site at www.dre.ca.gov and
click on “California Real Estate and Financial Services
License Information”. The servicer will be licensed by the
Department of Corporations, Department of Real Estate,
or Department of Financial Institutions.
WHO WAS MY MORTGAGE BROKER?
Mortgage brokers help you obtain a home loan that will best suit
your needs.
If y
ou worked with a mortgage broker, your mortgage broker will have
been the person that was not the lender but helped you get a loan. A
mortgage broker would have taken your loan application, reviewed
your options with you, and provided a disclosure statement of the
costs and fees associated with the loan. The broker’s name will
appear on that disclosure statement and on other loan documents
such as the nal settlement statement as having received a loan
origination fee or commission.
WHAT SHOULD I DO IF I HAVE A COMPLAINT
AGAINST MY MORTGAGE BROKER?
A mortgage broker has a duciary duty to you as the borrower. This
duciary duty includes a requirement that the mortgage broker place
your economic interests ahead of his/her own economic interest. That
broker will have been state-licensed and subject to licensing laws in
addition to the general lending laws.
The Department of Real Estate has jurisdiction over mortgage
loan brokers licensed as real estate brokers or salespersons, while
the Department of Corporations has jurisdiction over mortgage
loan brokers licensed as California finance lenders or residential
mortgage lenders. To determine which agency will take your
complaint, check the license status on the Department of Real
Estate's web site at www. dre.ca.gov and click on “California Real
Estate and Financial Services License Information”.
A Consumer Guide to Mortgage-Related Complaints 7
WHO CAN I CONTACT IF I HAVE OTHER MORTGAGE-
RELATED COMPLAINTS?
If you have a complaint regarding:
Appraisers - Bureau of Real Estate Appraisers
Escrow companies - Department of Corporations
Title insurance companies (including title insurance companies
that perform escrow services - Department of Insurance
Statewide fraud and other statewide criminal matters - Ofce of
the Attorney General
Local fraud and other criminal matters - Your local District
Attorney’s Office or City Attorney's Office
Unlawful discrimination in housing or lending practices
- California Civil Rights Department
Unsolicited telephone marketing calls and faxes -
Federal Communications Commission
Violations of (not interpretation of:
Equal Credit Opportunity Act, Fair Credit Reporting Act, Fair
Debt Collection Practices Act, and Truth in Lending Act -
Federal Trade Commission
Civil/Legal remedies - Private attorneys
If your complaint issue is
not addressed in this booklet, please
contact the Department of Real Estate and we can try to help
direct you to the appropriate agency or resource.
HOW DO I AVOID MORTGAGE-RELATED PROBLEMS?
Many mortgage-related problems can be prevented by taking some
precautions:
• Before you get your loan, do your own due diligence.
• Be aware of current scams by reading the Department of Real
Estate’s Consumer Alerts at www.dre.ca.gov/cons_alerts.html.
• Stay away from companies of
fering loan services for an
upfront fee as these are often scams.
• Beware of “bait and switch” tactics.
8 A Consumer Guide to Mortgage-Related Complaints
• If you are getting a loan through a broker, make sure he/she
is licensed.
• Read all of your documents and make sure you understand
them before you sign them.
• To the best of your ability, pay your mortgage payments as
scheduled.
• Make sure you are sending payments to the correct loan
servicer. Remember that if the loan servicer changes, both
your previous and new servicer must notify you of the change.
• If you have an impound/escrow account for payment of your
property taxes and insurance, make sure those bills are
actually getting paid.
• Check your servicing account from time to time to make sure
that your payments are being applied correctly.
• Once you have paid off your loan, make certain that the lien
is released.
GOVERNMENT AGENCY CONTACT INFORMATION
Federal Agencies
Federal Communications Commission (FCC)
Consumer and Governmental Affairs Bureau
Consumer Complaints
445 12th Street, SW
Washington, DC 20554
Phone: 1-888-CALL-FCC (225-5322)
Fax: 1-866-418-0232
Email: [email protected]
Website: www.fcc.gov
Federal Trade Commission (FTC)
Headquarters/Financial Services Division
600 Pennsylvania Avenue NW
A Consumer Guide to Mortgage-Related Complaints 9
Washington, D.C. 20580
Phone: (877) FTC-HELP (382-4357)
Website: www.ftc.gov
National Credit Union Administration (NCUA)
NCUA Region V-Tempe
1230 W. Washington Street, Suite 301
Tempe, AZ 85281
Phone: (602) 302-6000
Fax: (602) 302-6024
Email: [email protected]
Website: www.ncua.gov
Ofce of the Comptroller of the Currency (OCC)
Consumer Assistance Group
1301 McKinney Street, Suite 3450
Houston, TX 77010
Phone: (800) 613-6743
Fax: (713) 336-4301
Website: www.occ.treas.gov
Ofce of Thrift Supervision (OTS)
1700 G Street, NW
Washington, DC 20552
Phone: 1-800-842-6929
Fax: (202) 906-7342
Website: www.ots.treas.gov
U.S. Department of Housing and Urban Development
(HUD)*
451 7th Street SW, Suite 9146
Washington, DC 20410
Phone: (202) 708-1455
10 A Consumer Guide to Mortgage-Related Complaints
Consumer Financial Protection Bureau (CFPB)
Mortgage Payment Assistance or Consumer Complaints
Phone: (855) 411-2372
Website: www.consumernance.gov
State Agencies
California District Attorneys Association (CDAA)
For a roster of California county district attorneys
Website: www.cdaa.org
Department of Corporations (DOC)
Consumer Service Ofce
1515 K Street, Suite 200
Sacramento, CA 95817
Phone: (866) ASK-CORP (866-275-2677)
Website: www.corp.ca.gov
Civil Rights Department
Los Angeles Housing District Office
1055 West 7th Street, Suite 1400
Los Angeles, CA 90017
Phone: (213) 439-6703
Fax: (213) 439-6715
Oakland Housing District Ofce
1515 Clay Street, Suite 701
Oakland, CA 94612
Phone: (510) 622-2945
Fax: (510) 622-2956
Website: www.calcivilrights.ca.gov
A Consumer Guide to Mortgage-Related Complaints 11
Department of Financial Institutions (DFI)
1810 13th Street
Sacramento, CA 95811
Phone: (916) 322-0622
Fax: (916) 445-2123
Email: consumer@d.ca.gov
Website: www.d.ca.gov
Department of Insurance (CDI)
300 South Spring Street, South Tower
Los Angeles, CA 90013
Phone: (800) 927-4357
Website: www.insurance.ca.gov
California Department of Real Estate (DRE)
Mortgage Loan Activities
651 Bannon Street, STE 500
Sacramento, CA 95811
Phone: (877) 373-4542
Fax: (916) 263-8943
Website: www.dre.ca.gov
Ofce of the Attorney General (AG)
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550
Phone: (916) 322-3360
Website: www.ag.ca.gov
Bureau of Real Estate Appraisers (BREA)
1102 Q Street, Suite 4100
Sacramento, CA 95811
Phone: (916) 552-9000
Website: www.brea.ca.gov
RE 20 (PDE 13-282 Rev. 11/13)
