How to Successfully Resolve a Mortgage Complaint

In some instances, a person obtaining a mortgage from a company may come across instances where the company disregards the public interest and engage in practices of their own. These practices may unduly increase the liability and the risk of a person obtaining a mortgage and in certain occasions may have led to undue profiting for the company. Being one of the primary financial engagements of a person’s life, having a stable and a reasonable mortgage relationship with the lending company is a foremost requirement. Therefore, knowing how to react to such situations and successfully resolve a mortgage complaint is necessary for any borrower.

In the United States and many other countries, there are several state organizations and federal agencies responsible for regulating and controlling such mortgage companies. However, these entities could vary depending on the type of lending organization (e.g. a specialized mortgage company, a bank etc.) and the state. Furthermore, it is mandatory for a person with a mortgage complaint to first communicate the same to the company itself, wait for a response, and allow them to come up with a resolution for the problem. If the person believes that, the company fails to do justice and continue to engage in ‘bad’ practices, this is the time to seek federal or state support in resolving the issue.

Thus, if the company fails to provide an acceptable solution to the complaint, the next step is to follow the acceptable procedure for making a complaint to the regulating authorities. As mentioned above, these entities may vary. For instance, if the lending company is a bank, the regulatory agency may be the Federal Deposit Insurance Corporation or the Office of the comptroller of the Currency. In some instances, it may be the Federal Reserve or even the Office of Thrift Supervision. However, if there is a doubt, one could call the bank and ask for the details of its controlling organization.

Another way of doing the same is to contact the State Attorney Generals Department and let them know about the need to make a complaint against a mortgage company. They are bound to provide a person in such need the necessary information and the guidance to make the complaint. At times, making the complaint to the Federal Trade Commission is also not a bad idea as they are the ones who keep a tab regarding bad business practices among the financial institutions such as the mortgage companies.

In US and Canada, one could also opt to make the complaint to the Better Business Bureau (BBB) through their web site. Following the complaint, the BBB shall write to the mortgage company and allow them time to respond to their customer. If the company fails to deliver a reasonable solution, it will be marked as a ‘bad business practice’ on the part of the company, which shall harm their credentials.

Thus, it is apparent there are many avenues for a person to resolve any mortgage complaint successfully. However, it should be remembered that such complaints first need to be made to the mortgage company to allow them time to react.