Consumer complaint received 2023-02-25
Company: Freedom Mortgage Company
State: MS
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I am a customer of Freedom Mortgage company, who acquired from XXXX XXXX in mid-XXXX, where my original loan servicing was through. 

I pay my mortgage in advance, and for several months now, Freedom Mortgage has incorrectly processed and improperly applied my pre-payments to the correct months they are due, as well as improperly applying additional principal and escrow pre-payments. They are not applying my additional principal correctly and continue to show contradictory information ( i.e. a payment due date online doesn't match the due dates on paper statements I am mailed and doesn't match the due date a representative gives me over the phone ). Currently, this company verbally said my next payment is due in XX/XX/XXXX. My paper statement shows XX/XX/XXXX. My records ( and reconciling bank statements ) show my next mortgage payment is due in XX/XX/XXXX 

In addition, Freedom Mortgage only allows me to make these pre-payments 'over the phone '. Also, they do not have the capability to mail or email me a receipt of my payments once this is made. This seems ridiculous and outdated. When I finally was able to get a receipt after multiple attempts, the company could not provide a breakdown of what monies went toward the current payment, what monies went to additional principal, and what monies went to additional escrow - only a lump sum payment. And because I am not able to pay this payment online through their portal ( ex : early payments made a month or more before their due date can't be made online ), when I call in over the phone I have to explain what's going on with my account every single time I call in. Each time, I speak with someone new, and each time that person tells me something different they see on my account from the last time I called in. Despite these efforts to call in, explain the situation, escalate to a supervisor to correct, the payments continue to be misapplied. I feel as if I'm being penalized for paying early. 

When I've tried to call and contact Freedom Mortgage to correct these errors, with at least four attempts now since XX/XX/XXXX, I get a different response from the company representative that I'm speaking with. I've used their online message center, which does not allowing for external emailing. 

Today, I received another incorrect mailed notice that extra monies I have been paying toward principal are now being placed in a 'suspense ' account because Freedom Mortgage is trying to applying them towards a mortgage payment ; these monies are additional principal! Because these are also not being properly applied, that means additional interest monies continue to accrue. 

I have now requested copies of the audio recordings they make during these calls to ensure they are recording properly how I'd like these payments applied. However, I was denied and a subpoena was suggested. 

In addition, because Freedom Mortgage is incorrectly applying payments, they adjust and readjust my mortgage balance due. When they increase, decrease, and then increase the mortgage balance, my credit score is adversely affected. When checking my credit report, my available line of credit constantly fluctuates based on their adjustments. This drives down a credit score. 

I have tried without resolve to get this company to correct their errors ; I'm at my wits end and feel stuck with them because I have no other option since my original mortgage lender sold this mortgage servicing off and now it's been acquired by a different company. I am forced to use Freedom Mortgage for servicing, but this has been a nightmare. Should I be able to choose, I would use a different company ASAP. My home is my largest investment, and they continue to mishandle my payments on that investment. It's extremely discouraging and time consuming to continue to go through this debacle on a reoccurring and monthly basis. 

Please, please, please help!

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