Consumer complaint received 2023-03-28
Company: Freedom Mortgage Company
State: TX
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
In XXXX after attempting to make my mortgage payment, I noticed that my payment had increased by roughly XXXX. I had not received any calls from the mortgage company related to the payment shock and no physical copies of changes to my escrow, etc. After researching the customer portal on the company 's website, I realized that I had an electronic copy of an escrow statement. The escrow statement indicated that I had a shortage of {$10000.00}. I reached out to the mortgage company to discuss the changes and inquire about the change. I explained that my previous insurance company dropped my coverage forcing me to change insurance provided. The coverage ended in XXXX, although it was paid through XX/XX/2023. During the month of XXXX, I obtained new homeowner 's insurance through XXXX which the mortgage company paid for the new policy of approximately {$4300.00}. Shortly after I was able to obtain insurance through XXXX for the same amount of my prior policy. During my phone call to Freedom, I paid the {$4300.00} premium that I received back from XXXX, to help fund the shortage and requested a new escrow analysis. After the new escrow analysis and change in insurance company was updated to ensure the system would only pay out one time for the HOI, I was informed that there was still a {$6000.00}. I made several phone calls to Freedom to speak with a manager or supervisor regarding the issue and was passed around to SPOC 's and other agents who could not assist with the matter. No one was able to provide me with the exact reason the escrow was still short {$6000.00} although I paid back the exact additional payment that was paid out. Additionally, I was constantly advised that the agents could not access the newest escrow analysis in the system and that the increase in the shortage was due to my taxes increases, which the taxes only increased by a {$100.00} for the year. I tried explaining that a {$100.00} annual increase does not warrant a {$6000.00} escrow shortage. No new line items were paid out and the yearly payouts essentially remained the same on the account. I was initially confused that Freedom applied the {$4000.00} payment to the {$10000.00} escrow shortage even though that shortage was based on making two payments to the insurance company. No one has been able to assist me or correct the issue which is unacceptable. If there is truly a {$6000.00} shortage that means my escrow account was not analyzed properly the year before. Additionally, the escrow analysis statement reflects inaccurate information. The analysis statement reflects that my current payment prior to XX/XX/2023 was {$2800.00}, although my payment prior was {$2100.00}. I was advised that the statement pulls data from the prior year 's analysis which in my opinion is deceptive to the consumer. The most recent payment should be pulled from the system that reflects the customer 's current payment not a statement that was inaccurate to begin with. In addition, besides the initial representative I spoke with the customer service was horrible and the IVR does not work properly which I have advised individuals at Freedom of this issue multiple times. When a customer is attempting to reach the insurance department, the IVR automatically routes them back to the main menu. I was completely disappointed to spend 3 hours on a Monday trying to get an issue resolved that still has no resolution. At one time I was transferred to the SPOC who advised me that she was in Loss Mitigation which baffled me because the account is due for XXXX. The term Loss Mitigation is offensive to any borrower who is currently due for the current 's month payment. I need answers immediately to why the escrow is still short {$6000.00} and why the current month 's statement reflects the escrow is short {$4900.00}.

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