How do I file a complaint against a mortgage broker in CA?

Question

My broker took my pay stubs, bank statemetns, etc, then told me he was locking me in at a certain rate and ordering an appraisal. Then after a couple weeks, wouldn't call me back. Then by the time I go to someone else, the rates are up about .75 - is there anythin I can do or anyone I can complain to about this? Because I assumed he was doing his job, I didn't look into re-financing with anyone else, now I sort of SOL I guess.

Answer 1

Depends on how he is licensed.  Most brokers in California, like myself, are licensed by the California Department of Real Estate, however some still operate under a CFL license issued by the Department of Corporations.  Below are the links for both agencies to file a complaint. Additionally, you may also contact the better business bureau and file a complaint with them.  If you feel there was a crime committed with your paperwork, you may also contact the state attorney general's office as well.  

Answer 2

CA Dept of Real Estate

www.dre.ca.gov

Answer 3

Rates aren't up .75% in the last couple of weeks or the last month or more for that matter. Chances are the 1st broker was just lying to you or maybe doesn't know what he is doing and yes you can complain, but I think it could be for nothing.

If I were you, I would drill the first broker as to what went sideways. They owe you that much. If they couldn't do the loan, you should have gotten a statement of credit denial. If the pricing was in accurate, they ought to be able to account for what changed. Could be the LTV changed once they got the appraisal. This may have invoked certain delivery fees based on Freddie or Fannies new pricing scheme.

If you don't know more about what went wrong, I don't even think you can file an intelligent complaint. If you paid for the appraisal, you should be able to obtain a copy of it. You may not be able to use it if you go with another company, but at least you will know the current value if that was an issue in the first attempt.

Depending on how long you plan to be in this loan, you may want to consider an ARM. We currently have a convertible 3/1 ARM at 5.25% with low closing costs and a 5/1 interest only ARM at 6% with low costs.

See if you can salvage the first deal, get as much information as you can about what happened and then check with some of the local banks to see what their specials are.

Good luck.