SAN DIEGO -- The mortgage meltdown taught a painful lesson to thousands of homeowners that they better know what they're doing before they sign on the dotted line. Now I-Team reporter Mitch Blacher has uncovered how real estate and lending professionals aren't always who homebuyers think they are.

"I didn't realize how hard it was going to be," said Jennifer Chawla, a first time home buyer who spent 18 months researching her home buying decision. "I worked with seven or eight different realtors until I found the right one."

Chawla took a course through the San Diego Housing Commission. At the end of the course, she said she was told, "Now go out and find someone who can pre-qualify you."

The San Diego Housing Commission's Home Buyers Assistance Program has a list of lenders to help buyers pre-qualify. Spokeswoman Maria Velasquez said the Commission's first time home buyer's program started in 1992, noting how the Commission has helped 4300 San Diego area families get a home in that time.

But the I-Team found some major issues with the Home Buyer Assistance Program, which requires prospective home buyers to use one of the lenders on the agency's "Certified Participating Lenders" list. Buyers are required to apply for and obtain a loan through one of the mortgage lenders on

The I-Team asked Velasquez if the Housing Commission guaranteed these lenders on the list. "The disclaimer pretty much says we do not recommend one firm over the over," Velasquez said.

While they check the lender's track record, the Housing Commission does require a $400 fee from the lenders to be on the "Certified Participating Lenders" list.

The I-Team checked the lenders on the list and found broker Joe Corzo was convicted of burglary and battery; broker Zachary Love had a "pattern of misconduct," including "obstructing justice," and "providing false id to a police officer." Broker Patrick Kruse got in trouble with the State of California's Department of Real Estate for his "handling of trust funds." Broker Andrew Hinkle allowed an agent with an "expired real estate license" to handle mortgage loans.

Velasquez said it is not the Housing Commission's duty to check lender backgrounds. "Quite frankly that would be the responsibility of the mortgage company or the mortgage lender," she said.

After the I-Team started asking questions, the Housing Commission has changed. They will now require lenders to ensure that employees have licenses, certificates or registrations required by law. The Housing Commission will no longer call their lenders "certified." They also have a more indepth disclaimer on their website, but they still don't reveal these lenders have to pay to get on the participating lender's list.

The I-Team partnered with the San Diego Union-Tribune for this report. See the Union-Tribune's report on their website: www.uniontrib.com.