Reporting a predatory lender takes effort but creates real consequences. Regulatory agencies act on patterns of complaints. A single report may not trigger action on its own; enough reports from enough borrowers can lead to investigations, enforcement actions, and license revocations that protect others from the same harm you experienced. This guide walks through where to report, what to include, and what to expect after you file.
Step 1: Organize Your Documentation First
Before you file anything, gather your complete loan file. Regulators and investigators need specifics. A vague complaint about feeling misled is far less useful than a documented timeline showing that the rate you were promised in writing on March 3rd was different from what appeared in your closing documents on April 15th. The strength of your complaint depends almost entirely on the quality of your documentation.
Documents to collect before filing:
- Your signed loan application and any pre-approval letters
- The Loan Estimate you received within three days of applying
- Any revised Loan Estimates issued during processing
- The Closing Disclosure (received at least three days before closing)
- The signed promissory note and deed of trust or mortgage
- All email and written correspondence with the lender, broker, and servicer
- Your complete payment history (bank statements, cancelled checks, or servicer statements)
- Any written commitments, rate lock agreements, or fee disclosures made before closing
- Any notices you received after closing, including payment change notices, force-placed insurance notices, or foreclosure-related communications
Make copies and keep your originals somewhere safe. Regulators may ask for copies. An attorney, if you decide to consult one, will need them too.
Step 2: Identify What Happened
It helps to name the specific conduct before you file. Predatory lending takes many forms, and different forms are handled by different agencies with different authority. Ask yourself: Did the lender misrepresent the terms of the loan? Did they charge fees that weren't disclosed? Did they target you for a high-cost product when you qualified for something better? Did your servicer misapply payments or impose unauthorized fees? Did you experience discrimination based on your race, age, or national origin?
Being specific about what occurred helps regulators triage your complaint and direct it to the right team. "The lender lied to me" is hard to act on. "The lender told me verbally and in a March 15 email that my interest rate was 6.5% fixed, but my closing documents showed an adjustable rate starting at 7.25% with no cap on increases" is the kind of detail investigators can work with.
Consumer Financial Protection Bureau (CFPB)
The CFPB is the primary federal agency for mortgage lending complaints. File at consumerfinance.gov/complaint. The CFPB accepts complaints about mortgage origination, servicing, foreclosure, credit reporting, and related issues. The process is straightforward: you describe what happened, upload supporting documents, and the CFPB routes your complaint to the company, which is required to respond in writing within 15 days. You can track your complaint status through the CFPB portal.
If the company's response doesn't resolve your concern, you can provide feedback and the CFPB may escalate its review. The CFPB publishes its complaint database publicly, meaning your complaint - once filed - becomes part of a record that researchers, journalists, and other regulators can access. Lenders with high complaint volumes and poor resolution rates face reputational and regulatory pressure as a result.
The CFPB has taken enforcement actions resulting in hundreds of millions of dollars in consumer relief, often triggered by patterns identified through complaint data. Individual complaints matter because they contribute to that pattern.
Michigan Department of Insurance and Financial Services (DIFS)
For Michigan-licensed mortgage lenders, brokers, or servicers, DIFS is your state regulator. File at michigan.gov/difs. DIFS has authority to investigate licensees, require document production, conduct examinations, impose civil money penalties, and revoke or suspend licenses. A DIFS complaint against a licensed entity in Michigan can have more immediate local impact than a federal complaint, especially when the entity's entire business depends on its Michigan license.
When filing with DIFS, include the lender's or broker's name and license number. You can find license numbers at nmlsconsumeraccess.org by searching the company or individual's name. DIFS investigates complaints involving misrepresentation, licensing violations, failure to make required disclosures, and other violations of the Mortgage Brokers, Lenders, and Servicers Licensing Act. Investigations typically involve requesting a response from the licensee and reviewing both sides of the documentation.
Federal Trade Commission (FTC)
The FTC handles complaints involving deceptive and unfair business practices. For mortgage-related matters, the FTC's jurisdiction is somewhat narrower than the CFPB's - the CFPB has primary authority over many mortgage lenders - but the FTC maintains enforcement authority over certain non-bank entities and takes action against deceptive marketing practices. File at reportfraud.ftc.gov. The FTC also operates the National Do Not Call Registry and investigates deceptive financial advertising. For predatory lenders that engage in deceptive solicitation or marketing, an FTC report adds to the regulatory record.
U.S. Department of Housing and Urban Development (HUD)
HUD's oversight role covers fair housing complaints and FHA-related lending issues. If you believe you were denied a loan, offered worse terms, or steered toward a more expensive product on the basis of race, color, national origin, religion, sex, familial status, or disability, file a fair housing complaint with HUD at hud.gov/program_offices/fair_housing_equal_opp. HUD can investigate and refer cases for federal litigation. Fair housing violations are among the most serious lending violations because they carry both civil and potentially criminal exposure for lenders.
For fraud involving FHA-insured loans specifically - including appraisal fraud, falsified loan applications, or kickback schemes involving FHA products - report to HUD's Office of Inspector General at hudoig.gov/hotline. HUD OIG investigates fraud in FHA programs and against HUD employees and contractors.
Federal Bureau of Investigation (FBI)
Suspected mortgage fraud with criminal elements belongs with the FBI. This includes cases involving false appraisals, straw buyer schemes, income documentation fraud, identity theft, wire fraud, deed theft, or other conduct that goes beyond regulatory violation into criminal territory. Report to the FBI at tips.fbi.gov or through the Internet Crime Complaint Center at ic3.gov.
Include as much documentation as possible: loan documents, emails, wire confirmation records, and a timeline of events. The FBI investigates mortgage fraud cases through its Financial Crimes section. Criminal investigations move slowly and are rarely visible to complainants, but they result in prosecutions when the evidence supports them.
Michigan Attorney General - Consumer Protection Division
File consumer complaints with the Michigan Attorney General's Consumer Protection Division at michigan.gov/ag. The AG can investigate unfair or deceptive trade practices under the Michigan Consumer Protection Act, mediate complaints, and take legal action against businesses that violate Michigan consumer protection laws. The AG's office also pursues civil actions on behalf of Michigan residents when patterns of misconduct are identified.
The AG complaint process is often faster than federal channels for getting a direct response from a Michigan-based lender. The office has the authority to demand records, conduct interviews, and refer matters for prosecution when criminal conduct is evident.
What Happens After You Report
Managing expectations matters here. Filing a complaint does not guarantee an investigation, and an investigation does not guarantee enforcement action. What it does guarantee is a record. Each complaint filed creates a data point in a regulatory database. When enough data points accumulate around a single lender, investigators pay attention.
The CFPB requires companies to respond to routed complaints within 15 days and to close the complaint within 60. DIFS investigations can take months depending on case volume and complexity. FBI and HUD OIG investigations, when initiated, can take years before resulting in charges.
In the meantime, document everything you continue to experience. Keep records of every interaction with the lender or servicer. Don't assume the process is moving or not moving based on silence - regulators rarely provide status updates during active investigations for confidentiality reasons.
If your situation involves ongoing financial harm - payments you can't afford, foreclosure risk, or active servicer misconduct - consult a HUD-approved housing counselor or a consumer protection attorney in addition to filing regulatory complaints. Regulatory complaints protect future borrowers. Legal counsel protects you now.
A Note on Filing Multiple Complaints
Filing with multiple agencies simultaneously is appropriate and often recommended. The CFPB, DIFS, and the Michigan AG all have overlapping but distinct jurisdiction. Multiple filings from the same borrower are not seen as duplicative - they're seen as a borrower who takes the matter seriously. Each agency has different tools, and what one cannot act on, another might be able to pursue.
Coventry Enterprises can provide an independent assessment to support your complaint documentation. Related: predatory lending laws and borrower rights.