I was tricked and lied to by a loan officer and his company in California, where can I file a complaint?

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I worked with a loan officer from a mortgage/loan company in California to refinance my house, I was presented with a good faith estimate that showed a low interest rate with no prepayment penalties, and at closing the interest rate was higher with prepayment penalties. I called the loan officer who said to go ahead and sign the documents because he will fix the problem. I was on a deadline to close so I had to sign, and after I signed the loan officer and his company stopped answering my phone calls. I made a complaint with the BBB but nothing got resolved, is there anybody else I can make a complaint with that will persuade this company to remove the prepayment penalties? Please let me know. Thanks

  1. Reply
    February 12, 2011 at 10:50 pm

    We have what is called CAMB california association of mortgage brokers. In the future do not sign the papers once the loan docs are signed the deal is as good as done and the Loan Officer can not change them after it funds the Loan Officer is out of the picture and the bank holds all the cards.

  2. Reply
    February 12, 2011 at 11:31 pm

    You ran through two red lights at the doc signing and after.

    You should never sign anything that is not what you were promised. You should have known that once a contract is signed it can not be changed unless both parties agree and the lender was not going to agree and the loan officer did not represent the lender because he does not work for the lender.

    Then in California as well as other states you have a three day right of recission. That mean that even after you sign the loan docs you have 3 days (72 hours) and you can still cancel the loan for no reason what so ever. This had to be pointed out to you because most lenders have it in 14pt print and you were given a copy by who ever was your doc signer.

    All you had to do was sign the cancellation documents given you and you could have faxed them to four different places. One to the closing escrow officer, the title company, the lender and the mortgage broker that negotiated the loan for you.

    A good faith estimate does not tell you about pre-payment penalities.

    You may complain, when you filled out the application you were given several documents. One has a address and telephone number where you can call and make a complaint.

    CAMB is not that place because you don’t have to be a member of CAMB and if your mortgage broker is not a member there is really nothng CAMB can do.

    There are 2 different license in California that can do home mortgages. One is a Department of Real Estate ran by the Department of Real Estate, and the other is a California Finance Lenders license and is governed by the California Department of Corporation.

    So if you know which license your mortgage broker is a member then you can make a complaint with them.

    The complaint will be an after thought because now the mortgage broker is no longer in the picture and no matter who you complain to the fact that you signed the loan docs make it a legal contract.

    All loans have pre-payment penalties that apply when you refinance your house. If you sell your property most pre-pays don’t apply as they are called soft pre-pays. You will probably not refinance in the next 3-4 years when the prepay will no longer matter.

    Now about the interest rate. This is a tax deductable item. No matter how high or low the interest rate is it is tax deductable. So you will get that back. Check with your tax preparer for all tax advise.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  3. Reply
    February 13, 2011 at 12:19 am

    http://dre.ca.gov/ – For Complaint issues and Check with License

    http://www.ss.ca.gov/business/business.htm – If the company is in a different name or you want to verify the address.

    Hope these help

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