Consumer complaint received 2023-08-30
Company: Freedom Mortgage Company
State: IL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process
Sub-issue: Trying to communicate with the company to fix an issue while managing or servicing your loan

Complaint:
XXXX I called the Loss Draft Department and asked the Representative for clarification on the Monitored Claim Procedure Packet. I asked SPECIFICALLY about having two claim numbers, each with their own individual check, as they total over {$40000.00} combined. I was assured these are processed separately as there are clearly two separate claim numbers. The representative then took from me the claim numbers to notate on my account, along with their corresponding check amounts. He once again assured me to follow the instructions for losses of {$40000.00} or less. Within XXXX business days I will receive back my two endorsed checks. 
XXXX Following the Monitored Claim Procedure Packet for Losses of {$40000.00} or less, along with the confirmation I received from the Loss Draft Representative on XX/XX/XXXX, I sent the required documents via USPS Overnight to Freedom Mortgage Loss Draft Department . Inside the package was : Cover Letter, 2 claim checks, Insurance Adjusters Report, and a prepaid USPS Overnight return shipping envelope. I paid {$58.00} for the USPS Overnight shipping labels.

8/1- The package was received and signed for at Freedom Mortgage Loss Draft Department XXXX I called the Loss Draft Dept for an update. I was told that my checks are over {$40000.00} and I didnt follow the correct instructions. Clearly whoever opened and processed the contents of my package at the Loss Draft Department can not read. At that moment I advised the Representative to please refer to my cover letter detailing the two claims and claim numbers, the Adjusters Report detailing the two separate claims, and finally the actual checks which CLEARLY specify the individual claim numbers and identifying Cov A and Cov B. Each document that Freedom Mortgage received from me shows these are two separate checks for two separate claims. I asked why nobody from Loss Draft bothered to contact me, and he didn't have an explanation. He apologized and admitted this was overlooked, and told me they will be separated and processed appropriately as losses of {$40000.00} or less. 
XXXX I called the Loss Draft Department asking for another update on the status of my claim. I was told by the Representative that my checks were Endorsed and sent back to me as of that afternoon. 
XXXX I received my checks back via USPS Overnight using my prepaid envelope. My two endorsed checks were NOT inside the package. Instead my checks were returned to me along with the Missing Doc form, and another copy of the Monitored Claim Procedure Packet. 
XXXX I called the Loss Draft Department, and spoke to Escalation Specialist XXXX XXXX XXXX First off, XXXX immediately told me that my two checks were returned because the total is over {$40000.00} combined. I referred XXXX to check the notes of my previous calls to Loss Draft Representatives on XX/XX/XXXX, XXXX, and XX/XX/XXXX. Next, XXXX changed her tactic and told me that she needs two separate Insurance Adjusters Reports for each claim number. I told her to read the complete XXXX page Adjusters Report. That document has clear separate pages indicating Cov A - Dwelling and Cov B - Separate Structure. XXXX tried telling me she needed two separate documents, at which I told her that is a weak technicality, however I obliged. I offered to separate the pages and create two PDF documents corresponding to their corresponding claims. XXXX said she will manually separate the accounts on her end and escalate the issue to the processor. XXXX then tried giving me a XXXX excuse. After combing through my Adjusters Report, XXXX proceeded to tell me that Cov A Claim 1 is based on the values listed on Page XXXX in the Adjusters Report. I kindly told XXXX that the only VALUE in question is the payable amount of my check, {$37000.00} and nothing else. The Monitored Claim Procedure Packet does not mention this, and the previous XXXX Loss Draft Representatives did not mention that these values are the requirements. FINALLY, XXXX agreed that this was all a huge misunderstanding, these separate claim numbers were overlooked, and she was very apologetic. XXXX sent me a prepaid Overnight XXXX label to send BACK my two checks for a second time. I wanted in writing that my checks will be endorsed and sent back to me properly this second time, but XXXX refused to confirm or provide me any documentation acknowledging this mistake Freedom Mortgage Loss Draft Department made. 
XXXX I called the Loss Draft Department and spoke to Representative XXXX XXXX XXXX was extremely rude and condescending to me. She told me that nothing else matters that the previous Representatives, they were all wrong and misinformed me. XXXX said that regardless if my loss is over or under {$40000.00}, federal law requires me to endorse all of my checks over to Freedom Mortgage because I am in a Bankruptcy, and that I need to be on a Monitored CLaim status because of the bankruptcy. I was in complete shock and disbelief. When I asked XXXX to cite which Federal Law so I can research this myself, or to provide me documentation of separate requirements Freedom Mortgage has for Insurance Claims while in an active bankruptcy, XXXX disconnected the call and hung up on me. I contacted my bankruptcy attorney and he says no such federal law exists and that XXXX was being discriminatory to even mention my bankruptcy as a reason. 
XXXX Called Loss Draft Department again. Spoke to Representative XXXX. Right away, XXXX seemed to recognize the issue at hand and was in agreement with me. XXXX told me that she sent a message to her supervisor, and the processor on this claim. According to XXXX, she was able to see on her system that there are currently XXXX open Monitored claim and XXXX closed claim. The processor on the Open Monitored Claim needs to separate this into two endorsed claims, however there is another different processor listed for the XXXX closed claim. XXXX told me that she will personally contact me back within XXXX hours once she gets a response from her supervisor or the claim processor. 
XXXX Called Loss Draft Department, AGAIN. XXXX hours have passed since XXXX was supposed to contact me. Spoke with Representative XXXX. XXXX assured me that I need to allow XXXX hours for review from the processor, as XXXX escalated the claim only XXXX hours ago. I asked XXXX for his supervisor. He transferred me to Escalation SpecialisXXXX XXXX. XXXX then told me that the review process actually takes XXXX weeks from the initial escalation date of XX/XX/XXXX, and that I need to wait until XX/XX/XXXX for an update from the processor. 
XXXX Called Loss Draft and spoke to Escalation Specialist XXXX XXXX again. XXXX did a complete XXXX from how we ended our conversation on XX/XX/XXXX and reverted back to one of her previous statements, that the amount of the claim is greater than {$40000.00} and the amount is determined by the Replacement Cost Value on my Adjuster Report, therefore I must endorse the check to Freedom Mortgage. Once again I referenced the Monitored Claim Procedure Packet and Missing Doc form, and neither one states that claim values are determined based on replacement cost value. XXXX could not answer me when I questioned why none of the previous XXXX other Loss Draft Representatives that I have spoken to dating back to XX/XX/XXXX referred to the term Replacement Cost Value, they only referenced the payable amounts of my two claim checks. I asked to speak to XXXX superior. After waiting on hold, XXXX was unable to get anyone on the line. XXXX told me she is sending an email to her management to escalate this further and file a complaint, asking Management to contact me directly. XXXX said that it can take up to XXXX hours for management to contact me back.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation