When you obtain a mortgage, you want to know you’re doing business with a fair, integrity-first company who will meet all the terms of your agreement. You don’t want to discover a “gotcha” in the fine print which might cost thousands of dollars.

Choosing the right mortgage lender helps. But it’s also nice to know that the government is keeping an eye out for you too. The Consumer Financial Protection Bureau (CFPB) is the agency tasked with ensuring every lender plays fair.

The CFPB Implements & Enforces the Law

The CFPB can engage in any of the following activities to stop illegal mortgage lending practices.

• Sending out warning letters
• Investigating companies 
• Issuing subpoenas or civil investigative demands
• Conducting hearings
• Demanding violators provide victims with compensation
• Suing lenders in federal court

By enforcing consumer protection laws, the CFPB helps to keep the lending atmosphere both fair and transparent. 

What are some examples of unfair, abusive, or deceptive mortgage lending practices?

Examples include:

• Charging junk fees
• Selling illegal loan products
• Engaging in illegal discrimination
• Loan churning
• Charging predatory or illegal interest rates
• Fraudulent lending practices
• Issuing loans lenders know consumers will never be able to repay
• Charging excessive or abusive fees
• Steering borrowers into subprime loans even when they’d qualify for better ones

See also: From Application to Approval: A Guide to the Loan Underwriting Process

If you believe your lender is engaging in unfair or abusive practices, you can submit a complaint online. 

The CFPB investigates these complaints and often sends letters to companies for a response. Many companies respond in 15 days or less. You can check the status of your complaint after you submit, and submitting a complaint is free. They offer a video which tells you how to submit an effective complaint. 

Keep in mind you can’t submit a complaint about the same problem twice, so make sure your complaints are thorough if you’re going to submit one! 

What can the CFPB do? 

The CFPB has many enforcement actions at its disposal. It can sue mortgage lenders in federal court. Courts may award damages to consumers, may order principal balances reduced, or may even cancel debts. 

The CFPB is also heavily involved in educating both lenders and consumers. It provides lenders with guides, webinars, and fact sheets to help them stay on top of regulatory changes. It also helps to craft disclosures that lenders are required, by law, to share with consumers. 

Unsure about your rights? CFPB educates consumers about their rights as well. 

See also: Key Strategies to Address the Racial Wealth Divide Through Home Ownership

A Smooth Path to the Right Mortgage 

Ideally, no consumer would ever have to involve a government agency to get a fair, transparent, and trustworthy mortgage. 

When you work with the Doce Group, you never have to worry about predatory lending. We have a 36+year track record of looking out for our borrowers, and we don’t intend to stop now.

If you want to get a loan you’ll never have to submit complaints about, schedule your free consultation today.