Is there a governing body that protects home buyers when working with mortgage lenders?

I have a number of concerns around my interactions with my mortgage lender. My mortgage was scheduled to be closed a month ago and remains delayed, reportedly due to questions the underwriter has with the appraisal. The broker mistakenly acknowledged the initial delay was due to the underwriter stating concern around my wife's maternity leave and subsequently requesting additional pay stubs be submitted.

Thanks for your time, Kevin

3 Answers

You would want to contact the Consumer Finance Protection Bureau on this, Kevin. They are the oversight board for lenders nationally. They might, or might not, refer you to additional agencies if it's determined that your wife's maternity leave was used as the basis to delay/deny your loan, as there are strict requirements regarding how lenders treat borrowers on Family or Maternity leave.

In addition to the CFPB, you might want to take this up with the mortgage banking regulator of your state. Generally, this would be called the state banking department or the (state) department of financial institutions. You can also take it up with the ombudsman of the lender involved.

Kevin, as an appraiser I can tell you the first bullet every lender fires is at the appraiser to blame him for any delays. Truth be told, every lender wants/requires a response back from the appraiser in hours as it relates to any report condition. If there was an appraiser caused delay then this issue typically gets resolved in a matter of days. I would call the lenders bluff as it relates to saying there was an appraisal issue and demand that you get copies of all reports. The appraiser must indicate an effective date in the report (typically the date inspected) and what is called the date of signature (the date the report was sent). In cases where there is a needed update, correction, lender condition, reconsideration of value, etc. the appraiser will again have an effective date (unchanged) but will have a now extended date of signature. There's a good chance if the lender only provides you with one appraisal report, that there were in fact no issues with the original appraisal. The issue may also be related to the lender client relationship with an appraisal management company (AMC). I would ask your loan officer. Good luck.