Are California employers legally obligated to verify past employment to a financial institutions request?

I'm applying for a mortgage on an investment property and my former employer refuses to verify my employment history.

Your former employer is only obligated to make sure you get a W-2 the january after you stop working on the job. That's ALL.

You may need to substantiate your employment through your past w-2's. The IRS and state keep a record of employer contributions toward your taxes, and they will keep a record of those contributions by the employer's federal and state employer identification numbers. This might be enough for the mortgage company if it comes from IRS or your state directly instead of from the employer.

You're in an ugly situation, best of luck.

Wow ... that's strange. Have you called (or presented yourself in person to) your former employer to ask "WHY?" If it's a matter of money let them know it's OK to charge a small fee ($10.00 or so) to do the verification. In absence of cooperation why not offer copies of your W2 to the lender? W2s would prove your employment history. Your employer cannot do more than that - all that's allowed is: the dates that you worked for them, the job that you had and the salary.

Hi,
Not sure of the legal side of this. However, I just did a re-finance and as long as you have access to your W2 and IRS documents that should do. That will give someone your employment record.
With all the problems with foreclosures I can see the mortgage companies look very carefully at every-ones employment records and finance records as well.
Good Luck

Your employer will refuse unless your mortgage company faxes a written consent signed by you. But listen, what is really going on, is your previous employer is just taking their sweet time in returning the verification to the mortgage company (sometimes up to a week depending on how large the company is) and your mortgage company is just telling you that they are refusing because they hope you will call your old employer and make them hurry up.

I have bought and re-financed way more homes than I care to remember and I have never had a mortgage broker ask to verify my employment with a PREVIOUS employer.

That said, I have never been given a loan when they didn't ask for my CURRENT employer.

If your motgage broker is giving you a bad time about this, then switch brokers. There are LOTS of brokers who would love to help you .