I found a borrower who was looking to purchase a home. I did everything a loan officer should do. However, in the first month of trying to close the loan, the manager took over my loan processing because they let their processor go. It took the manager six months to close this loan. For context, I have 35 years of experience in the mortgage industry, including mortgage compliance, FHA, and VA underwriting. I even owned my own mortgage company for 11 years. The loan was ultimately closed using my NMLS number, but I was not allowed to communicate directly with the underwriter. I was also told to refrain from using gift funds from the county again, even though the customer mentioned he had county gift funds. During this process, my borrower was informed I didn’t know what I was doing, so the manager took over the loan. This situation is unbelievable and particularly frustrating because this loan was for the son of a friend I’ve known for 30 years. When the loan finally closed, I received a check and a termination letter. I was supposed to receive a commission of $2,600 but instead got a check for only $250. The memo on the check stated the customer’s name and labeled it a finder’s fee, which should be mentioned on the final closing disclosure or settlement paperwork. I believe this company has violated RESPA and several other laws. It’s not just about the money; it’s about the unethical way I was treated and the principles involved in this situation.
You are in the business for 35 years and even owned your own mortgage company for 11 years, but still don’t know where to report a RESPA violation? Maybe I’m missing something here!
Vale said:
You are in the business for 35 years and even owned your own mortgage company for 11 years, but still don’t know where to report a RESPA violation? Maybe I’m missing something here!
I know where to file a complaint, and it has already been submitted. However, I was inquiring about where to file for defamation of character. While I am not concerned about financial compensation, I do care about my reputation. So yes, you are missing something.
Vale said:
You are in the business for 35 years and even owned your own mortgage company for 11 years, but still don’t know where to report a RESPA violation? Maybe I’m missing something here!
This is a very serious situation that involves not only me but also the borrower. I want to ensure that the customer is not unfairly burdened. Therefore, I would appreciate positive feedback rather than further criticism. I believe I’ve endured enough challenges over the past six months. Thank you for your understanding.
R/loanoriginators
Changing the NMLS (without just cause) on a loan application is one violation, not disclosing third party fees is a second violation, to state the obvious. Your first call should be to a labor atty as mentioned but also a quick call to their legal/compliance dept might also help resolve things. Worst case, have your client contact the CFPB for misrepresentation/fraud or call them yourself and file an anonymous tip.
@Nico
If I called the CFPB and the loan was closed in my name and number, wouldn’t that involve my license? The company would not allow me to see the final Closing Disclosure (CD) or Settlement Statement, let alone work on the file. However, the customer sent me the Final CD and ALTA because he wanted to ensure everything was correct. The manager is very controlling, and we’ve had disagreements due to his issues. I am trying to protect myself and my borrower from this company. He did not handle this issue or my concerns at all. Regarding the Finder’s Fee, that is clearly a violation of RESPA. Additionally, speaking negatively about me to my borrower is unacceptable.
Call your state labor board. I’ve been there regarding pay ‘irregularities.’ The labor board doesn’t mess around, I got paid.
Jesse said:
Call your state labor board. I’ve been there regarding pay ‘irregularities.’ The labor board doesn’t mess around, I got paid.
Thank you so much. I have never been a 1099 employee so I did not know who to contact.
Was it a gift or a community second?
Avi said:
Was it a gift or a community second?
The borrower purchased a home from his family, and they gifted him 10%, and the County he lives in gifted him $35,000 as a second.
Avi said:
Was it a gift or a community second?
The borrower purchased a home from his family, and they gifted him 10%, and the County he lives in gifted him $35,000 as a second.
I have used gift funds in the past, but I have never encountered this alarming activity in my career. It took six months to close the loan, not including the three other brokers who completely mishandled it.
Avi said:
Was it a gift or a community second?
The borrower purchased a home from his family, and they gifted him 10%, and the County he lives in gifted him $35,000 as a second.
I’m a little concerned about how you’re describing the details of this transaction. I would assume you set up the 10% as a gift of equity and didn’t run into problems there. However, if the county’s funds are a forgivable second lien, then it shouldn’t have been listed as a gift. It sounds to me like it took 6 months because nobody quite knew how the assistance program worked, who was supposed to approve it, fund it, what documents were needed, what the requirements were, etc.
You can report a RESPA violation to the Consumer Financial Protection Bureau (CFPB). The CFPB is the government agency tasked with enforcing RESPA regulations. The bureau will investigate the complaint and work to get you a response, typically within 15 days, from the financial company you are making it against. Defamation | Jimerson Birr.
@Rory
Thank you very much! Your help is greatly appreciated.