Consumer complaint received 2023-06-01
Company: Freedom Mortgage Company
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
I am contacting the CFPB out of desperation as it has been nearly impossible to work with Freedom Mortgage, the servicing company on my VA loan. This loan was current on payments since origination until XX/XX/XXXX when the Covid19 pandemic caused me to lose income for several months while businesses were closed. This loan was on Covid19 forbearances through XX/XX/XXXX where thereafter, I applied for loss mitigation as I was told I had to submit a complete package to be reviewed for all options. I was in review until XX/XX/XXXX when I received a VA Partial claim approval for {$69000.00} covering the past due payments. I returned the paperwork then was told by Freedom Mortgage that the offer was rescinded and no further explanation given other than I had to reapply. I went ahead and resubmitted to then get a letter dated XX/XX/XXXX stating due to an incomplete package, I was going to be reviewed for streamline options. I tried arguing stating I submitted a complete package but was told it didn't matter, I would be reviewed for all options which makes no sense. On XX/XX/XXXX, I received a new offer for a streamline Covid19 Disaster Modification which increased my monthly payment by almost {$1200.00} a month. I could not understand why I was not treated fairly with a full review. This is how Veterans are treated? I am not late on my bills, ever. If it werent for Covid-19, I would not be in this position to begin with. The representatives at Freedom scared me, advising this modification was my only option and if I didn't take it, foreclosure would proceed. I thought I had no choice so I made the three trial payments ... Freedom Mortgage did not convert to a permanent modification because they mailed the agreement out XX/XX/XXXX which I had not received until XX/XX/XXXX due back by XX/XX/XXXX. I ended up returning it XX/XX/XXXX so they denied it. 
On XX/XX/XXXX, I resubmitted a complete package with my most recent pay stubs, bank statements, tax returns and required forms. Last week, I received a Covid19 Disaster Modification Approval with a trial plan - again, increasing my payment over {$1000.00} a month. Under the Covid19 Refund Modification, it states it is not eligible because borrowers income has to be added. When I questioned Freedom why my income was not entered, I was told this was a streamline program, so I explained again, I submitted all of this income. I was then told its a generic response about income and that this is my only option. No further explanation given. 

I was told by my VA Loan Technician that under the COVID-19 Refund Modification, VA can purchase a Veteran 's past due payments and amounts of unpaid principal up to 30 % of what is owed. The total amount to pay off this loan through XX/XX/XXXX is XXXX so -30 % = {$300000.00} amortized over 30 years at 6.375 % = {$1800.00} + escrows $ XXXX {$2800.00}. The payment they are trying to make me accept is {$3700.00}. The VA Technician was surprised as these programs are set up to help veterans, not put them in a much worse position. 

10. I want the CFPB to publish this description on consumerfinance.gov so that others can learn from my experience. ( Say NO, better chances of Freedom Mortgage helping you. When it's published, they go above and beyond to prove you wrong ) 11. What would be a fair resolution to this issue? 
I just want a fair decision based on my full income hardship assistance package submitted. I was advised by my VA loan technician that this loan has never been modified or a partial claim applied, that the loan should qualify for the Covid19 Refund Modification. I am not looking for a lower payment, I would like to resume making my regular payments prior to Covid 19 without a $ XXXX monthly increase so I am not living on the edge of losing my home every month.

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