Consumer complaint received 2024-01-22
Company: Freedom Mortgage Company
State: TN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process
Sub-issue: Escrow, taxes, or insurance

Complaint:
Freedom Mortgage Corporation acquired my loan from XXXX XXXX in XX/XX/XXXX. My monthly mortgage payments prior to transfer were approximately {$1400.00} per month, with {$400.00} of that being paid to escrow. In XX/XX/XXXX, I paid the XX/XX/XXXX bill due to Freedom Mortgage in in the amount of {$1400.00}. On XX/XX/XXXX, Freedom Mortgage sent me an Escrow Analysis indicating a shortage of {$1100.00} in escrow and a new monthly mortgage payment of {$1600.00} that would be billed effective XX/XX/XXXX. In the analysis, Freedom indicated the shortage amount of {$1100.00} consisted of a Required Minimum Balance of {$590.00} minus and a Projected Minimum Balance of ( {$510.00} ) equating to {$1100.00}. Freedom indicated my new monthly escrow payment effective XX/XX/XXXX would change from {$400.00} to {$450.00}, in addition to a {$91.00} shortage spread. This in addition to my regular principal and interest of {$1000.00} would be {$1600.00}. 
On XX/XX/XXXX, I emailed Freedom Mortgage Customer Service as well as the XXXX, XXXX XXXX, and requested information on my escrow. I asked that they advise how they calculated the shortage and spread, as well as why my escrow indicated a balance of {$2.00} when I paid XX/XX/XXXX which included {$400.00} to escrow. I also asked why XXXX Mortgage indicated an escrow balance transfer of {$390.00} to Freedom Mortgage and why it was not also reflected in the escrow balance. I indicated even if Freedom did a reversal of the initial transfer of {$390.00} back to XXXX, it should not have come from {$400.00} I remitted for XX/XX/XXXX. I requested they rectify all discrepancy in the initial analysis and send a new escrow analysis to me by XX/XX/XXXX. On XX/XX/XXXX, a representative from Freedom called me and began to detail how the costs were calculated. In multiple instances that representative provided incorrect calculations. I informed him my annual homeowners insurance was changed to a new carrier effective XX/XX/XXXX and was over {$500.00} cheaper so their calculation was incorrect. I requested he email or mail me a breakdown of all escrow figures, including detailed breakdown of shortage and required minimum escrow balance. He agreed he would but that has not been done. On XX/XX/XXXX, I receive an email from Freedom Mortgage that was attempted to be recalled. It was a duplication of the exact same initial escrow analysis ; however, they were sure to note it would be advisable for me to remit any homeowners premium refund received from the prior carrier to Freedom Mortgage to replenish my escrow account. This is misleading since their policy indicates XXXX ) any additional escrow paid in will not reduce mortgage payment billed amount back to what it was and XXXX ) any attempt to pay escrow shortage in full would not reduce mortgage payment back to what it was. This policy is also in conflict with their analysis which indicates specific mortgage payment amounts based on how much is paid back into escrow. 
On XX/XX/XXXX, I emailed Freedom Mortgage Team and XXXX  XXXX XXXX, to remind them I had not received the info previously requested. I let them know that upon logging in to make my XX/XX/XXXX mortgage payment, I saw a new Escrow Analysis reflecting a shortage now of {$2300.00}!! vs. initial {$1100.00}! In addition, the new mortgage premium billed for XX/XX/XXXX was now {$1500.00}!! vs. {$1600.00}!!. I explained I was confused as to the new escrow shortage, required minimum due and spread calculations. I also question how a higher escrow shortage can equate to a lower monthly mortgage payment. I informed them at that point their company was simply throwing out random calculations with no transparent accounting to justify their analysis and billing. I again requested the same info- a detailed breakdown of the escrow shortage and required minimum calculations but this time for both the initial and revised analysis. I requested a detailed accounting of the {$390.00} escrow discrepancy from the XX/XX/XXXX payment remitted. I also requested they reflect all escrow payment detail from the prior mortgage holder on their analysis as is incorrectly reflects no payments for all of XXXX. 
I purchased my home in XX/XX/XXXX and have made payments in advance since acquiring my loan and have never been late. My initial mortgage was with XXXX XXXX. They transferred it to XXXX Mortgage in XX/XX/XXXX and XXXX Mortgage transferred it Freedom Mortgage in XX/XX/XXXX. 
It is my opinion, Freedom Mortgage is intentionally acquiring specific loans based on specific demographic in order to manipulate the accounting and raise escrow thereby raising mortgage payments and ultimately forcing individuals to default on their loans. Given my loan is now at $ XXXX ( purchased at $ XXXX ) and my home value is estimated at $ XXXX, there is a significant amount of equity. Given my loan was issued with a XXXX XXXX  interest rate, and that interest rate is nowhere to be found in the current U.S. economic environment, Freedom Mortgage and XXXX XXXX know it's unlikely a customer would refinance their mortgage loan. In addition, since the loan is FHA, and FHA changed the rules requiring homeowners under FHA to maintain escrow with the mortgage holder, it permits predatory lenders and bad actors like Freedom Mortgage to continue intentionally cause customers to default. Freedom Mortgage, along with partner companies in crime like XXXX Mortgage and some other non-bank lenders, are leveraging loopholes in FHA mortgage loan requirements and other loan types to cause intentional financial hardship, default and foreclosures to customers in order to obtain and sell the property for themselves. I require Freedom Mortgage to provide a fully detailed breakdown of how they calculated the escrow shortage and minimum escrow balance across both the initial and revised escrow analysis of my account. I require Freedom mortgage to give a full account of the {$390.00} discrepancy of {$400.00} escrow paid for XX/XX/XXXX. I require Freedom Mortgage to provided detailed accounting on all payment detailed they would have received from XXXX Mortgage prior to and during mortgage transfer.

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