Product: Mortgage

In early XXXX XX/XX/XXXX, I applied for temporary Hardship Assistance with Freedom Mortgage after losing my job in XX/XX/XXXX. My intention was to pause payments or seek deferment while I navigated a competitive job market. Unfortunately, the lack of clear communication throughout the process resulted in significant damage to my credit and caused confusion regarding the terms and implications of applying for hardship assistance. 

During the application process, there was no information provided about the potential impact on my credit score. No mention of this was included in the application, nor was I informed whether payments needed to be made during the review process. The only communication I received was an email requesting additional documentation, which I provided promptly. 

Throughout the review period, I reached out to Freedom Mortgage several times, including a recorded call on XX/XX/XXXX. During this initial call, I was reassured that payments were not required during the hardship review process, as the purpose of such assistance was to offer relief during financial hardship. I received no additional email or correspondence outlining the potential consequences of non-payment during this period. 

It wasnt until after I was reported delinquent and contacted Freedom Mortgage myself that I was informed of the impact on my credit score. By that time, the damage had been done, and my credit score had dropped from XXXX to XXXX, a XXXX decrease. I dont recall receiving any prior notifications via email or mail, and if any important details about credit impact were buried in paper correspondence, they were easily missed. 

After nearly XXXX months of waiting, I was finally presented with a forbearance option that allowed me to defer payments until XX/XX/XXXX, at which point the entire past-due balance would be duea solution that offered no real relief given my circumstances. 

BASIS OF MY COMPLAINT : Fair Credit Reporting Act ( FCRA ) Violations : Under the FCRA ( 15 U.S.C. 1681s-2 ), Freedom Mortgage is obligated to provide accurate information to credit bureaus and to properly notify borrowers about the implications of missed payments. I was not adequately informed of the impact on my credit before it was reported, and the communication only came after the delinquency had already been reported. This constitutes a failure to provide timely and clear information, violating FCRAs obligations for fair and accurate credit reporting. 

Negligent Misrepresentation : During my conversations with Freedom Mortgage representatives, I was assured that payments were not required while my application was under review. This assurance was misleading and resulted in financial harm. According to Illinois law ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX ), negligent misrepresentation occurs when false or incomplete information is provided in the course of business and leads to economic harm, which is exactly what happened in my case. I acted based on Freedom Mortgages misinformation, causing my credit to suffer. 

Failure to Inform Under the Real Estate Settlement Procedures Act ( RESPA ) : Under RESPA ( 12 U.S.C. 2605 ), mortgage servicers are required to communicate clearly and promptly with borrowers about their loans. Freedom Mortgages failure to provide me with timely information regarding the consequences of non-payment and their failure to properly inform me about the status of my hardship application for nearly XXXX months demonstrates a breach of this duty. This lack of communication directly contributed to the damage to my credit. 


Citations : -FCRA ( 15 U.S.C. 1681s-2 ) : Governs the accuracy of credit reporting by mortgage lenders. 

-Negligent Misrepresentation ( XXXX XXXX XXXX XXXX XXXX XXXXXXXX, XXXX ) : Legal precedent regarding misrepresentation of information in business that causes economic harm. 

-RESPA ( 12 U.S.C . 2605 ) : Federal law mandating timely and clear communication from mortgage servicers.