Consumer complaint received 2021-12-03
Company: Freedom Mortgage Company
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
Contacted Freedom Mortgage several times via phone, email, and their website regarding the COVID-19 Loan modification that they finally offered. The message below was sent to XXXX XXXX, XXXX XXXX, and XXXX XXXX and I have yet to receive a response despite receiving at least one out-of-office message confirming that it was received. 

In regards to the COVID-19 Recovery Modification offered XXXX Per Mortgage Letter XXXX, the Partial Claim must not exceed 25 percent of the unpaid principal balance as of the date of Default at the time of payment of the initial Partial Claim less any previous Partial Claims paid. At the date of default ( when the COVID-19 forbearance started ), the outstanding Principal was {$140000.00}. There are no previous partial claims paid for this loan. 25 % of the aforementioned outstanding balance is {$37000.00} of Partial Claim funds that should have been available to me. 

The Pre-Modification Unpaid Principal Balance is listed as {$140000.00} per the documents, which as stated above, is incorrect. However, had it been correct, 25 % of this number for the calculations of the COVID-19 Recovery Modification claim is {$36000.00}, not the {$30000.00} that was indicated on the worksheet. Subtracting the Escrow Advances and the Delinquent Interest, the balance available for the Principal Deferment is {$25000.00}, {$6600.00} MORE than the {$18000.00} that was listed on the documents you previously prepared. 

Additionally, you have listed that I owe you {$5000.00} in Escrow Advances on the documentation provided but per the statement dated XX/XX/XXXX, the Escrow Balance is only ( {$2800.00} ), {$2100.00} less. Factoring in the payments made on XX/XX/XXXX and XXXX on my behalf, the Escrow Advances should be {$3900.00}, not {$5000.00}. 

I have contacted Freedom Mortgage several times requesting COVID-19 Modifications offers and never received the automatic review of my account form COVID-19 XXXX  in XXXX of XXXX as defined by Mortgage Letter XXXX. It also states that The Mortgagee does not have to contact the Borrower prior to reviewing the Borrower for the COVID-19 XXXX  or sending out the modification documents. Borrowers who do not qualify for the COVID-19 XXXX  must be. Freedom Mortgage failed to this extent. Nevertheless, I filed a complaint with the CFPB ( XXXX ) on XX/XX/XXXX and XXXX XXXX XXXX responded that you were still getting the XXXX  ready for release ''. He even stated that I needed to contact you to start the process, which I did, HOWEVER, Mortgagee Letter XXXX indicates that XXXX  offers are sent without any application or request. This resulted in more than a MONTH of waiting and the resulting XXXX XXXX XXXX XXXX XXXX XXXX  ) for the modification being raised from 2.77 % to 3.09 %, which as you know, was rounded ups to the 3.125 percent I was offered. I am requesting the interest rate be modified to 2.725 ( MAX ) to match the time of my original request. 

The Mortgage Letter XXXX also indicated that Mortgagee must ensure that all Late Charges and penalties are waived. Mortgagees are not required to waive Late Charges and penalties, if any, accumulated prior to XX/XX/XXXX. There is a total of {$81.00} in fees and charges, including {$66.00} on my most recent statement ( attached ) and {$15.00} that was billed on XX/XX/XXXX for a Property Inspection Fee AFTER I contacted you regarding my options for a COVID-19 modification. have contacted you several times regarding. My multiple attempts to get this resolved ( attached below ) have also went ignored by Freedom Mortgage. 

Furthermore, the letter was XX/XX/XXXX but was not mailed until XX/XX/XXXX, one day prior to an actionable decision being required on the account. Per " If the Borrower does not return the executed documents within 30 days, the Mortgagee must report Default Status Code AQ Option Failure. You only provided me 14 days to return the requested information AFTER you sent it one day before it was due as shown in the attachments. 

I received out of office messages from the recipetants o I know my messages are in receipt, and are continently being ignored.

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