• What about "credit doctors" or lenders that can "help" me get the loan, even with credit problems or incorrect information?

• What should I do if I'm not sure about the loan that I've been offered? Can I back out of the deal?

• Who regulates my financial institution?

Submitting fraudulent information to get a home loan is a federal offense. When you apply for a mortgage loan, you are certifying that all the information you've submitted is correct.

There is no punishment for the person or the lender who "helps" you fix your credit report or get the loan. Even if you submit incorrect information with your lender's consent or knowledge, you are responsible. The repercussions can be devastating. You may be successful in closing your loan, but you could lose your home and be charged penalties if it is determined later that the information you submitted was false.

First, the law requires all lending institutions without exception to be licensed to engage in business. Find out if your lender is licensed to do business. Start by contacting the Division of Finance and Corporate Securities (DFCS) in Salem (please see page 11). Some major banks are federally licensed, while others should be licensed with DFCS, which is part of the Department of Consumer and Business Services of the State of Oregon. 

Second, consult with a housing non-profit or consumer-protection program. You may also want to get a second opinion from a family member or friend who has experience with finances. 

To answer the second part of the question, should you decide to back out of a home loan, you must do so before you sign the prepared loan documents during escrow. Ask the title company handling your transaction to forward you a copy of settlement document known as a HUD-1 as soon as possible, so that you will have an opportunity to verify the charges that you are expected to pay at closing. 

If you are refinancing, you have three business days after signing the loan documents during which you can change your mind; however, you must notify the lender in writing that you do not want the loan.

As noted earlier, the first thing you need to know is whether your lender is licensed to make loans. You also need to know if the institution is regulated at the federal or state level. Here are resources to use to obtain additional information about your institution or to file a complaint:

• State-chartered institutions
  If your institution is regulated at the state level, contact the Division of Finance and Corporate Securities (DFCS) at 1 (503) 378-4140, or toll-free at 1 (866) 814-9710. To file a complaint, fill out our online complaint form or call and ask us to send you a complaint form. You may write to: DCBS/Division of Finance and Corporate Securities, 350 Winter St. NE, Room 410, Salem, Oregon 97301-3881.
• Commercial banks
  If the name of your bank includes the word "National" or has the initials "N.A.," it is regulated by the Office of the Comptroller of the Currency (OCC). The telephone number for the OCC is 1 (800) 613-6743 or 1 (415) 545-5976.
• Savings and loan associations or savings banks
  If your institution has the word "Federal" or the initials "F.S.B." or "F.A." included in its name, it is regulated by the Office of Thrift Supervision (OTS). The number for the OTS is 1 (800) 842-6929.
• Credit unions
  If your credit union has the words "federal credit union" in its name or the initials "FCU," you can contact the National Credit Union Administration (NCUA) at 1 (703) 518-6330.