Consumer complaint received 2023-09-23
Company: Freedom Mortgage Company
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage
Sub-issue: Delays in the application process

Complaint:
Re : Freedom Mortgage - Loan Servicing Issue, PMI cancellation On XXXX, I submitted a request through Freedom Mortgage 's online platform to cancel PMI from my mortgage in order to save money on my mortgage costs. My financial advisor recommended I take this step as he had recently completed this request and stated it was easy to complete and it is likely I would qualify based on current market trends. 

On XX/XX/XXXX, I received a response that my mortgage payments were in good standing, I was nearing 2-year seasoning as of XX/XX/XXXX and to expect a Brokers Pricing Opinion form in the mail. The next week, I received a letter dated XX/XX/XXXX that my request was denied due to a high XXXX and not achieving 2-year seasoning. 

Over XXXX and XXXX I tried to obtain clarification on the process for cancelling PMI by emailing, calling and sending a letter to the po box . I received different information each time I contacted Freedom Mortgage. At times I was told XX/XX/XXXX was my 2-year seasoning date at other times it was stated that 2-years was not achieved until XX/XX/XXXX which is when the first mortgage payment was posted ( I closed on my house on XX/XX/XXXX ). Then I was told by a team leader that Freedom Mortgage 's system was inflexible and they were not allowed to send out a XXXX until XX/XX/XXXX. I was told to call them back on this date. I did call in on XX/XX/XXXX and spoke with 6 different people and no one was able to send out a form with no real explanation as to why. I was told to submit my request through the online platform ( which always takes 10 days to process ). I finally escalated a request to receive a form for the 3rd time and a team leader emailed the form. 

I immediately sent in the form and noticed the payment of {$100.00} was cashed on XX/XX/XXXX to process the XXXX. I called to inquire what to expect next and the customer service rep stated that while she saw a check was cashed, the XXXX form seemed to be missing and requested that I resend the form through the online platform and she would put a work order through so they would be expecting the form. 

On XX/XX/XXXX, I received a letter through the online platform from Freedom Mortgage titled Goodbye. The letter stated that as of XX/XX/XXXX my mortgage would now be serviced through XXXX XXXX XXXX. This is the 4th mortgage service provider in 2 years. Since this letter was received there now seems to be a sense of urgency to complete the PMI cancellation request with a broker calling me several times in one day to schedule an appointment. 

Based on my experience with Freedom Mortgage along with the recent XXXX XXXX fine issued by CFPB for offering kickbacks and incentives to real estate agents and brokers to work for the benefit of Freedom Mortgage, I do not feel confident this organization is working in my best interest. In their sudden sense of urgency to fulfill this commitment, I expect the report to come back that I do not qualify for PMI cancellation and for Freedom Mortgage to maintain my {$100.00} payment. I have submitted a request today through the online platform to cancel my request for PMI cancellation and apply the {$100.00} to my principal amount. 

While {$100.00} is not a major financial loss, it is a significant loss to me as a consumer, because I will need to restart the process with XXXX XXXX XXXX and pay additional fees for what seems to be a routine request. 

Based on reading numerous complaints on XXXX, XXXX, XXXX XXXX, and XXXX XXXX it is discouraging to read so many complaints that involve the consumer realizing savings from a transaction or request. Consumers that are trying to refinance, complete loan assumptions or PMI cancellation requests seem to get stuck in an administrative loop that takes months to resolve through escalations and complaint requests and the reward for struggling through Freedom Mortgage 's administrative incompetency is to then have your Mortgage sold off in a bundle. This administrative loop benefits Freedom Mortgage at the expense of consumers. 

Consumers deserve better! Once they choose a mortgage lender, they are then at the mercy of an industry that buys and sells mortgages frequently without any consumer choice in the process. I believe a 10-15 day notice of selling your mortgage to a new provider is insufficient, especially if you have outstanding requests with the provider. 

I spend over 20 years teaching employees how to provide customer service, consultative selling skills and leadership development. Throughout this process I have asked myself where has service gone in the United States? It often seems that corporations are more interested in hustling consumers out of their money rather than helping them save money. 

Thank you for reading.

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