…mortgage rate lock-in?
Aware that rates fluctuate, unscrupulous brokers have been known to tell borrowers that they have locked in a rate with a wholesale lender when they haven’t. If rates drop, these dishonest brokers can secretly lock at the lower rate and reap a covert profit after the loan closes.
The lying-about-the-lock trick doesn’t happen as often as it used to because brokers are being regulated more closely. However, regulations vary greatly from state to state — and some states don’t regulate mortgage brokers at all…
yes the State of California have a regulation (or law) to prohibit brokers from lying about mortgage rate lock-in