Consumer complaint received 2023-10-24
Company: Freedom Mortgage Company
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Private mortgage insurance (PMI)

Complaint:
Freedom Mortgage has refused to remove Private Mortgage Insurance ( PMI ) from my mortgage and continuously provided inaccurate, missing, contradictory, or outright deceptive information on how to request PMI cancellation dating back to XX/XX/XXXX. This includes, in at least two cases, changing the information provided to meeither on its customer dashboard or sending a different version of documentsas a result of my pointing out discrepancies in their responses. 

As per federal regulations, as well as Freedom Mortgages own communications to me in multiple direct messages via its secure messaging system ( SEE ATTACHED MESSAGES ) and my eventual denial letter, repeated on its blog post ( XXXX XXXX XXXX ), PMI can be removed at the request of the homeowner after reaching XXXX XXXX equity if the homeowner has made significant improvements to the home, as I have done and as I have proved to Freedom via documentation. 

After months of Freedom ignoring my requests for information on ordering a broker price opinion ( BPO ) ( PLEASE TIMELINE SEE ATTACHED, LABELED " 1.TIMELINE ... '' ) once instructions were provided to me I followed Freedoms instructions and ordered a BPO on XX/XX/XXXX. I listed the improvements and provided documentation as requested in my BPO request form. On XX/XX/XXXX, I received a valuation of {$530000.00}, which put my LTV ratio at XXXX XXXX. Major improvements are listed. SEE BPO REPORT ATTACHED the BPO ( LABELED " 2 ... '' ) However, on XX/XX/XXXX, Freedom sent me a one-page denial letter refusing to remove my PMI, indicating that I had not reached the required LTV ratio . It did not include any additional information on how it made this determination. Please see scan of this letter ( DOC 3A. ) After multiple additional attempts to contact the company by phone and its secure messaging system to understand the discrepancy, I was finally escalated to XXXX XXXX in a phone call on XX/XX/XXXX. Both she and the customer agent that I spoke to before her informed me that, despite all previous instructions and communication otherwise, I needed to reach a XXXX XXXX LTV ratio, per the " XXXX State Mortgage Guaranty Insurance Cancellation Disclosure '' that I signed ( DOC 3B ) because my loan was between 2-5 years old. 

However, both the XXXX State Disclosure and my denial letter also clearly states that the minimum seasoning requirements are waived if property improvements increase the home value. The attached Broker Price Opinion ( BPO ) report shows that I have made multiple significant improvements that have increased the value of my home. XXXX XXXX, the customer service agent to whom I was connected after requesting to speak to a manager on XX/XX/XXXX, also confirmed this verbally and said she had overlooked the major improvements listed on the BPO. She told me that she would follow up with the head of the PMI department for a clarification of why I was being held to the XXXX XXXX LTV rate and get back to me within a few days, but has since stopped responding to my follow-up emails ( DOC 4. ) During our call, XXXX XXXX also emailed me a copy of my denial letter ( DOC 4b, ) which was materially different from the letter that I received by mail. This time, the letter was 6 pages long and outlined requirements for PMI removal that had never previously been communicated to me, including that A current BPO must demonstrate the increase in property value as direct result of major improvements completed since loan origination. Only the portion of the increase directly attributable to major improvements will be considered. This has never been communicated to me in any instructions or in Freedom Mortgages original denial letter that it sent to me on XX/XX/XXXX. 

This follows a pattern of evasive and deceptive behavior dating back to XX/XX/XXXX, when I first called for information on removing my PMI. Another example of this is the change that Freedom Mortgage made to my customer dashboard in XXXX, after I pointed out that per Freedoms own estimates, I had built up significant equity in my home, which should make me eligible for PMI removal ( DOC 5A. ) For months, a section on my customer dashboard on the website, Refinance and Get Cash showed the exact equity value that Freedom had estimated that I had built into my home. As late as XX/XX/XXXX, the number was visible and read : You qualify for up to {$68000.00} cash for the equity in your home. ( DOC 5B, CUSTOMER DASHBOARD1 ATTACHED. ) Once I inquired if this equity also meant that I could now remove my PMI, the company then removed this information from my dashboard. ( SEE doc 5C CUSTOMER DASHBOARD1 ATTACHED. ) Given this pattern of behavior, I strongly believe that Freedom is purposefully making it difficult for customers to remove PMI, including in changing its PMI criteria. In addition to resolving my personal issue, I hope that CFPB and/or other relevant federal and state agencies can investigate and stop Freedom from violating homeowners rights. 

To support my complaint, I have attached the following documents : 1 ) Timeline of communications with Freedom Mortgage a. Select secure messages and communications with Freedom mortgage dating to XX/XX/XXXX. All messages are available upon request. 
2 ) BPO report 3 ) BPO denial letters : a. Scan of 1-pg PMI removal denial letter received by mail, dated XX/XX/XXXX XXXX PDF version of denial letter sent by XXXX XXXX on XXXX XXXX 4 ) PDF of email communications with XXXX XXXX including attachments : a. XXXX XXXX Mortgage Guaranty Insurance Cancellation Disclosure 5 ) Customer dashboard a. XX/XX/XXXX message to Freedom Mortgage about customer dashboard and requesting information on removing PMI b. Customer dashboard 1 : XX/XX/XXXX c. Customer dashboard 2 : XX/XX/XXXX I appreciate your attention to this matter and your commitment to protecting consumer rights in the financial sector. 
Sincerely, 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