Most people cannot afford to purchase a home without some form of a loan. Home loans generally allow a person to obtain title to a piece of residential property. The most common form of a home loan is a mortgage. There are many different types of mortgages, which differ depending on monthly payment rates and overall interest arrangements.
In addition to mortgages, there are also various other types of home loans. For instance, home improvement loans allow a homeowner to complete improvement projects on their home, such as room additions, landscaping, and roof work. There are also other loans such as junior mortgages and other types. These all depend on the specific aims and goals of the borrower.
What Are Some Common Disputes Involving Home Loan Lenders?
Finding the right home loan lender is important when it comes to securing a loan. It is important to find a qualified lender who has the necessary credentials and experience. Some common disputes involving home loan lenders may include:
- Fraud in the issuing or denial of a loan (the borrower can sometimes be unaware of lender fraud until later)
- Breaches of loan contracts
- Issues with loan modifications
- Sudden increases or changes in monthly payments or interest rates
- Lack of credentials or operating licenses
- Various home loan scams and lending schemes (these can be quite common in certain settings)
Mistakes often occur during the mortgage process before the procedure becomes effective. Some mistakes may involve complications receiving payments or providing for various needs such as repairs and renovations. Documentation attached to the mortgage may contain errors on the paperwork. A lawyer may need to analyze mortgage paperwork to provide proper answers.
What is a Fiduciary Relationship?
A fiduciary relationship is one where one person – known as the fiduciary – owes a special duty to another person. The fiduciary must look out for the other person’s interests with special care. Early lender liability lawsuits attempted to establish that lenders had a fiduciary duty to those who borrowed from them. However, as time went on, lenders were successful in limiting the ability of borrowers to contend that the lender-borrower relationship is fiduciary.
A fiduciary relationship between a lender and a borrower must have the following elements:
- The borrower must be in a position of dependence, inequality, weakness, or lack of knowledge
- The borrower must have faith, trust, and confidence in the lender
- The lender must exercise control or influence over the borrower’s affairs.
What is Lending Discrimination?
The Consumer Financial Protection Bureau enforces fair treatment through the Equal Credit Opportunity Act. The Act protects customers in mortgage and financial dealings. The laws prevent lenders from basing credit and loan procedures on characteristics of a person.
If you feel like you’ve been discriminated against on an application or throughout the mortgage process, consider filing a complaint or contacting a lawyer. A legal professional may explain the process and the type of discrimination you suffered.
What Should I Do if I Have a Bank or Credit Product Complaint?
Report them if you have problems with your bank, financial institution, lender, or broker. To file a complaint, you should:
- Contact your bank’s branch manager, customer service hotline, or file a complaint on the institution’s website.
- Explain your problem and how you would like the institution to fix it
- Provide copies of receipts, checks, or other proof of transaction
If the bank doesn’t help you, consider contacting a regulatory agency.
What if I Have a Complaint About a Mortgage Company?
If you have a complaint against a mortgage company, try resolving it with the company first. Several government agencies accept complaints about mortgage lenders, and in some cases, it is beneficial to file a complaint with more than one agency at the federal and state level.
What If I Have a Dispute or a Complaint Involving a Home Loan?
Home loan lawsuits comprise a significant amount of real estate lawsuits each year. If you feel that you have experienced any financial losses or a violation of rights regarding a home loan, it may be necessary to file a real estate lawsuit. In most cases, this will result in a legal damages award for losses such as unnecessary payments, loss of property, or breach of contract.
How Do I Report a Mortgage Company for Discrimination?
The Consumer Financial Protection Bureau (CFPB) enforces the Equal Credit Opportunity Act. The Equal Credit Opportunity Act prohibits lenders from denying credit to borrowers because of certain characteristics. File a complaint with the CFPB if a lender has denied your mortgage application due to your:
- Marital Status
- Ethnicity of nationality
- Income from public assistance programs
The Department of Housing and Urban Development (HUD) enforces the Fair Housing Act. The Fair Housing Act prohibits discrimination when you rent, buy, or finance a home. Your state likely has similar laws. Consider filing a complaint with the HUD and the fair housing office in your state if a mortgage company has discriminated against you because of your:
- National Origin
- Marital Status
How Do I File a Complaint About Mortgage Company Services?
The CFPB enforces many different laws. These laws include the Truth in Lending Act and the Real Estate Settlement Procedures Act. These laws require lenders to disclose information to homebuyers before buying a house. If you’ve had a problem with a new or existing mortgage, consider filing a complaint with the CFPB.
Common examples of mortgage complaints include:
- Difficulty applying for a mortgage
- Difficulty receiving loan estimates and documents
- Difficulty transferring a mortgage to another servicer
- Difficulty applying for your payments correctly
- Difficulty refinancing or modifying a mortgage loan
- Misreporting mortgage account status to you or credit reporting agencies
- Requiring private mortgage insurance
- Charging additional fees
How Can I Be Aware of Deceptive Mortgage Practices and Scams?
The Federal Trade Commission Act is the primary statute of the Federal Trade Commission (FTC). This act states that unfair and deceptive practices affecting commerce are unlawful. IF a mortgage company makes deceptive statements, omits important facts, or uses misleading actions, consider reporting the company to the FTC. Common examples may include:
- Making false statements about their ability to offer loans
- Charging fees for mortgage services that aren’t provided
- Using illegal tactics to collect mortgage balances
Additionally, consider filing a complaint with your state’s consumer protection office about mortgage frauds or scams.
Do I Need a Lawyer for Help with Home Loan Issues?
Home loans are a very important aspect of homeownership and maintenance. You may need to hire a qualified mortgage lawyer if you have any legal disputes or issues regarding a home loan. Your attorney can help you during the process of selecting and securing a loan. This can help you avoid legal issues and conflicts from the start. However, if you do encounter any disputes, your lawyer can help you file for the necessary relief in court and can represent you during the legal process.
You can use LegalMatch’s services to find an excellent attorney in your area. LegalMatch allows you to narrow down your search for a lawyer in your city or state. By selecting the issues involved in your particular case, you can find a lawyer specifically tailored to your case. There is no fee to present your case, and LegalMatch’s services are always 100% confidential.