Consumer complaint received 2023-03-01
Company: Freedom Mortgage Company
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XXXX of XXXX, I received an account statement that informed me that I would begin paying escrow payments to Freedom Mortgage on XX/XX/XXXX along with my mortgage payment. There was no reason as to why this was going to occur, it just stated your new balance is. I originally closed on my home with a different servicer ( XXXX XXXX  ) where the original loan was without escrow. I wanted to pay for my own insurance and taxes because sometimes mortgage companies underestimate the figures leaving you scrambling to make up the difference. Eventually the loan was bought by XXXX XXXX and now Freedom. While with XXXX, we purchased insurance with XXXX  and from XX/XX/XXXX until XX/XX/XXXX XXXX  covered our home. Earlier in that month we decided to shop around for insurance that was competitive in pricing, but also gave us some insurance breaks with our vehicles as well. So we decided to go with auto owners insurance, and our insurance agent with XXXX XXXX XXXX XXXX assured me that there would be no lapse in coverage seeing that XXXX XXXX would end on XX/XX/XXXX at XXXX  ( XXXX XXXX  ) and XXXX XXXX coverage would kick in at XXXX  ( XXXX XXXX  ) of XX/XX/XXXX. 
Freedom mortgage is telling me that I had a lapse in coverage and with this lapse in coverage their system automatically forces me to pay into escrow. Basically, they have signed me up for force-placed insurance even after I reached out to them on XXXX XXXX ( faxed them all documents on XX/XX/XXXX ) with documentation proving that I did not have a lapse in coverage. I provided every monthly payment history for auto owners from XX/XX/XXXX to XX/XX/XXXX to show them that I had coverage. I even included a renewal letter with XXXX  to show them I had insurance with XXXX  up until XX/XX/XXXX, and that the policy would renew on XX/XX/XXXX at XXXX XXXX  of that day, but I decided not to renew because we were going with auto owners whose coverage started at XXXX XXXX  on XX/XX/XXXX. I did my due diligence to get them to rectify the situation, and I spoke with them today to ask them why they did not take care of getting the loan out of escrow, and they said because of the insurance lapse. I provided documentation showing them that this was not so, and the error is within their judgement. I have seen complaints online about Freedom mortgage getting kickbacks from an insurance company and for them to try to enroll me into some kind of force-placed insurance policy is not right. Im already taking care of my business and making sure my home is covered and my taxes are paid. I need help getting this fixed because they certainly are not willing to listen to reason. Also, I did not receive any correspondence in XXXX XXXX  XXXX or XXXXXXXX XXXX  XXXX stating that my insurance coverage had lapsed. I only was notified with a XX/XX/XXXX account statement that my mortgage was going to increase in XX/XX/XXXX XXXX

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