While we would love buying a home to be a perfect experience, it rarely is. When things go very wrong with the home buying experience, you may choose to file a complaint about your loan or mortgage. It is imperative that you know how to correctly file a complaint about your loan or mortgage when problems arise.

Types of Loans and Mortgage Complaints

More than 94,000 of mortgage broker complaints were filed with the Consumer Financial Protection Bureau in a three-year period ending in February 2014. The majority of the mortgage broker complaints fell into categories, including:

  • Misrepresentation of information
  • Harassing solicitations and phone calls
  • Loan modifications
  • Poor customer service
  • Past-due debt and foreclosures with loan servicing
  • Escrow payments
  • Payment issues

types of loan complaints

Complaints about Misrepresentation of Information

Sometimes it feels like a seller will tell you anything to make you sign on the dotted line. Occasionally, this actually happens and a seller, or a mortgage company, tells you what you want to hear, not necessarily the truth.

This was the case for a PissedConsumer user who wrote about Quicken Loans unfair mortgage practices. He arranged a mortgage with an expectation about private mortgage insurance. Once his loan was in effect, however, the original terms he had agreed to changed, and he was paying additional fees every month.

He explains in his online review, "When I called Quicken Loan to enquire about [the extra PMI fees], I was passed around to so many people only to be told that the PMI will be removed as scheduled in the Amortization Schedule regardless when the balance reaches below 78% of the loan balance. I have been paying extra amount each month in order to pay off the loan faster but I was told that it doesn't matter."

Fortunately, Quicken Loans called the customer and addressed his concern. The situation was resolved between the two parties quickly. The consumer received a refund of the additional fees he paid beyond the originally agreed to terms.

Complaints about Continuous Phone Calls

There are laws that collection companies must follow that prevent them from calling your place of work and calling certain times of the day. Mortgage companies, however, are not calling about collections and seem to have no problem calling customers at any time with additional offers and new solicitations.

These complaints about mortgage companies address conversations that seem to go nowhere and frustrating phone calls. In a PissedConsumer complaint about Freedom Mortgage, the customer claims the company doesn’t even own his mortgage but calls his home number and work number constantly.

He describes the scenario in his complaint, "I am not currently one of the loans being transferred, yet someone from Freedom Mortgage continuously calls me. So, now, I am continuously getting phone calls not only at home, but also they are calling my work phone trying to get me to refinance. I also get tons of solicitations via regular mail as well, also trying to get me to refinance. This is getting ridiculous!"

He feels annoyed by harassing phone calls and other users left similar stories on the thread with his complaint. At the time of writing, Freedom Mortgage has not reached to any of the customers who have left complaints on the PissedConsumer website.

Complaints about Hidden Figures in Financials

Sometimes, there are numbers that might appear in fine print somewhere in your mortgage documents that don’t show up until the ink on your signature has dried. It is often in a bank’s best interest to not call attention to these additional fees or large payments, so they don’t. Then a customer is left to discover an expensive oversight or addition months or even years later.

Pissed Consumer has seen many complaints about mortgage companies, including One Main Financial. After making payments on time for seven years, a customer realized that the final payment on his loan was larger than the first 84 payments. He went ahead and made the payment, but posted a review about One Main Financial on the Pissed Consumer website about feeling misled by the mortgage company.

In his own words, "It says right on the loan paper payments of $333.00. Now [One Main Financial] wants to stick me for $483.27 for the last payment. They had a song and dance about interest bearing account, but that was NOT made clear to me when I took out the loan. It does not say that on my loan papers."

Fortunately, this story does have a successful conclusion. The consumer did reach out to the company, filed a complaint about the billing errors and it was resolved to his satisfaction.

If you have had similar troubles with mortgage companies and those issues have caused you financial hardship and distress, it may be time to discuss your situation with an attorney. Many laws protect consumers from the misconduct of mortgage brokers.

When to Complain About Mortgage Companies

There are many different avenues to use when pursuing complaints about mortgage lenders. If your mortgage broker complaint is against a specific individual within a mortgage company rather than a complaint about a particular loan product, you will first speak to the mortgage company. In order to resolve the issue consider the following process:

  1. Speak to the mortgage company to see if the company itself can resolve the problem easily. This may be the case if there is a simple misunderstanding.
  2. Report the incident to the professional organization of the broker if the mortgage company fails to resolve the dispute. This might be the National Association of Mortgage Professionals and the National Association of Mortgage Brokers.
  3. File a complaint against a specific mortgage broker with the state regulatory bodies for the state where the dispute occurred.
  4. File a complaint with the Better Business Bureau, if the situation persists. The Better Business Bureau may help mediate and resolve the situation as well.

The loan servicers are required to respond to your concerns within 30 days or you may pursue additional claims against the company. After speaking with your mortgage company, if the issue is not resolved in 30 days, you may pursue your claim with a government agency. Most claims are reported to the Consumer Financial Protection Bureau.

mortgage complaints

Filing Complaints with the Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau, or CFPB, works as an advocate and a resolution intermediary between consumers and financial organizations. To file a complaint through the CFPB, you will need to take the following steps:

  1. You will need to file a mortgage broker complaint with the Consumer Financial Protection Bureau online or in writing.
  2. The CFPB will review the file and then send an inquiry to your mortgage company through an electronic portal.
  3. The mortgage company is given a deadline to respond to the inquiry.
  4. Any additional communication is done through the electronic portal, and the CFPB also has access to the information.
  5. Three quarters of CFPB complaints about mortgages are closed by the agency to the satisfaction of the customer.
  6. If you are part of the twenty-five percent of cases closed by the CFPB but not resolved satisfactorily, you may request that higher manager within the Consumer Financial Protection Bureau handle your claim. This will hopefully lead to a satisfactory resolution.

Complaining about Loan Products

If your complaint focuses on unfair mortgage practices rather than the person or company you worked with, your best option is to file a complaint with the appropriate regulatory agency. Many organizations monitor companies and their products.

Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation, or FDIC, monitors banks that are insured by the agency, but not a part of the Federal Reserve System. You may file your complaint with the FDIC by telephone, by mail or by filling out an online form. The FDIC contact information is as follows:

Federal Deposit Insurance Corporation
Division of Compliance
1730 Pennsylvania Ave
7th Floor
Washington DC 20429
(877) 275-3342

Comptroller of the Currency
If you would like to make a complaint against the National Bank, you may contact the Compliance Management Office of the Comptroller of the Currency, or OCC. You can file a complaint by mail or electronically.

Comptroller of the Currency Compliance Management
250 E Street SW
Washington DC 20219
(800) 613-6743

Office of Thrift Supervision
If you would like to file a complaint against a Federal Savings and Loan company or a Federal savings bank, you will need to contact the Office of Thrift Supervision by making a phone call, filing a written complaint or by filling out the online complaint form.

Office of Thrift Supervision
Consumer Affairs Division
1700 G Street NW
Washington DC 20552
(800) 842-6929
FAX: 202-906-7342

Federal Trade Commission
The Federal Trade Commission, or FTC, oversees mortgage and finance companies as well as state credit unions. To begin a claim with the FTC, you will need to complete the Complaint Assistant, an online form that will request the necessary information.

Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, N.W.
Washington DC 20580
(877) 382-4357

The Federal Reserve Board
If your complaint involves a state-chartered bank, you will be filing notice with the Federal Reserve Board. The Federal Reserve Board also handles concerns about additional violations that involve the Truth-in-Lending laws, the Fair Credit Reporting Act, and the Equal Credit Opportunity Act. To file a complaint, download the form to complete and then submit the form by fax or by post.

Federal Reserve
PO Box 1200, Minneapolis, MN 55480
Fax: 877-888-2520
(202) 452-3693

National Credit Union Administration
A complaint against a National Credit Union is filed with the National Credit Union Administration. This can be done using the agency’s website or by filing a complaint in writing or over the phone.

National Credit Union Administration
1775 Duke Street
Alexandria VA 22314-3428
(703) 518-6300

Department of Veterans Affairs
VA Loans are handled by the Department of Veteran Affairs. The agency guarantees the loans and oversees handling of the mortgages as well. Contact the VA by email, by post or over the phone.

Department of Veterans Affairs
Consumer Affairs Service
810 Vermont Avenue, NW
Washington DC 20420
(202) 273-5770

Arranging a mortgage and signing the final paperwork can be complicated. There are many areas where problems may appear. While you always hope to be one of the lucky ones who have no complications, if you do have concerns about unfair mortgage practices, be sure to share your concerns in an appropriate manner. In that way, if the mortgage company is in the wrong, you may be eligible for restitution from the company and you will help other consumers avoid a problem as well.

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While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal, medical, accounting, investment, or any other professional advice as individual situations will differ and should be discussed with an expert and/or lawyer.

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