Disciplinary Actions against Brokers

Common reasons can include fraudulent activity, mishandling of client funds, unlicensed activity, misrepresentation or failure to disclose relevant information, and violation of state or federal laws related to mortgage lending and brokering.

The process usually involves filing a complaint with the regulatory body that oversees mortgage brokers in your area. This could be a state licensing board or national agency. They will then conduct an inquiry into the matter. If they find evidence of misconduct, they may take disciplinary action.

Disciplinary actions can range from fines and penalties to suspension or revocation of their license. They may also be ordered to make restitution to clients who suffered financial harm due to their misconduct.

You can check with your local licensing authority or regulatory agency. Many have online databases where you can look up licensed professionals and see if they have any past or present issues with their license. Also consider checking with the Better Business Bureau and doing a general internet search for any complaints or lawsuits involving the broker.