Can we sue or hold a mortgage broker accountable for negligence and misrepresentation?

UPDATED: Oct 1, 2022

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Can we sue or hold a mortgage broker accountable for negligence and misrepresentation?

My husband and I have been trying to refinance a property that we own and

purchase another simutanously. We started this process 7 months ago but we still do not have a closing date or anything. Titles have been ordered on both properties and came back clean weeks ago and prior to this our credit reports have been run. We had financial breakdowns originally and have sent in all required documentation. The broker continually says and over promises that closing is happening this day or that day, everything is in line, nothing else needed and yet still nothing. He even put in writing to the other seller’s attorney multiple times that he was expecting to close first time about a month ago and the second time yesterday. Yet, nothing was done and not to mention we don’t have any breakdowns other than him typing in an email what the percentage is, monthly payment, etc. I have had multiple break downs over this, anxiety and hours spent on a daily basis for months every day trying to get this done. We are looking to see if there is legal action we can do against him? This person should not be allowed to deal with any human being for mortgages.

Asked on September 1, 2018 under Real Estate Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you believe (as you apparently do) that you can prove that he misrepresented (which means that the statements were lies when made--if they were honest when made but were later disproven or negated by events, that is not faud), you could sue him for both "regular" fraud and also potentially consummer fraud, under NJ's Consumer Fraud Act, which can provide for legal fees and enhanced compensation. Bear in mind, however, that you can only recover compensation for provably economic or financial losses (e.g. extra costs incurred) due to the fraud; there is no compensation for anxiety, stress, etc. in fraud  cases.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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