How to complain about your mortgage broker
By Melanie Chambers • Bankrate.com

When Thomas Howard and his partner started shopping for a house this past fall, they initially felt very good about working with their mortgage broker. "I knew her beforehand -- she was a go-getter and we thought that would help get us the best rate possible," says Howard.

What they got was an unprofessional broker who not only gave them incorrect information, but couldn't even fax documents to the lender on time.

"We were incensed," says Howard, a first-time home buyer from a small town in southern Ontario, who asked that his real name not be used. "She's making $2,000 or more off our deal when, in fact, she did the worst job ever."

But because home buyers don't actually pay the brokers they work with -- brokers earn a commission from the lender -- it can feel like you have no recourse to take a broker to task.

But there are a few steps you can take to express your displeasure with a broker's poor service, including filing a complaint with a regulatory body. Read on to find out what to do if you've had a bad experience with a mortgage broker.

What is a mortgage broker?
A broker can help you identify what kind of mortgage is right for you and track down the best rate available. She is the middleperson between you and the lending institution from which you obtain your mortgage, be it a major bank, a smaller credit union or a private company.

Working independently, either on their own or as a franchisee of a larger company, brokers collect a finder's fee from the lending institution where you end up getting your mortgage.

According to the Canada Mortgage and Housing Corporation, about 26 percent of Canadian home buyers use mortgage brokers. First-time buyers appear to be brokers' biggest fans: In 2004, the number of first-time buyers using brokers increased to 23 percent from 22 percent in 2002. Renewing home buyers use brokers less, about six percent, down from 11 percent.

Who you gonna call?
If you have a problem with your broker, the first step is to talk to the broker herself.

Miscommunication is the biggest reason behind broker complaints at Mortgage Intelligence, says Peter Wakefield, manager of compliance for that firm, based in Mississauga, Ont.

"It could be something as small as a language barrier creating the miscommunication, but talk to the broker about it," he says.

Because he had a quick closing, Howard feared the broker might botch the deal if he complained about her services. If this happens to you, call the head office of whomever your broker works for. Large companies have internal compliance departments with a complaint process already in place.

Speaking with the brokerage house may result in a change of lenders, says Wakefield. "The broker may be inexperienced, and in that case we might suggest that we bring in a more experienced agent to work along with them," he says.

If the company doesn't offer a satisfactory solution, you can contact the Canadian Institute of Mortgage Brokers and Lenders (CIMBL), providing the broker is a member.