Consumer complaint received 2019-08-07
Company: Freedom Mortgage Company
State: UT
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
Consumer Financial Protection Bureau ( CFPB ) XX/XX/XXXX, www.consumerfinamce.gov XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Utah XXXX ( XXXX ) XXXX XXXX To whom it may concern : I am a XXXX XXXX ( XXXX XXXX ) XXXX veteran who was preparing for retirement by getting improvements made to my home so as my retirement would be enjoyable. Once I had made the improvements I contacted my homeowners insurance to notify them of the home improvements to update my homeowners insurance, this began my difficulties with my mortgage company : Freedom Mortgage, XXXX. XXXX XXXX, XXXX, CA XXXX, phone XXXX, www.freedommortgage.com my Lone Number is # XXXX. 

On or about XX/XX/XXXX, I contacted my home owner insurance broker XXXX XXXX, representing : XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, Utah XXXX, Office : ( XXXX ) XXXX, Cell ( XXXX ) XXXX, Fax ( XXXX ) XXXX, XXXX, to update my homeowners insurance as I had added solar panels and a whole home generic generator to my home and wanted to make sure my homeowners insurance was updated to cover these improvements. Mr. XXXX notified me that my homeowners insurance policy with : XXXX XXXX XXXX, XXXX. XXXX XXXX, XXXX, CA XXXX, ( XXXX ) XXXX, my policy number was # XXXX. 

had been canceled on or about XX/XX/XXXX, Freedom mortgage, then known as XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX, XXXX, XXXX. XXXX XXXX, XXXX XXXX TX XXXX, had failed to pay my homeowners insurance for the period of XX/XX/XXXX through XX/XX/XXXX, from my escrow account that they manage through my mortgage payments. Freedom Mortgage had been dealing with XXXX making both my homeowners insurance and Utah State taxes for a number of years. 
Mr. XXXX was forced to find a new homeowners insurance carrier for me, which he obtained through : XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX. XXXX XXXX, XXXX OH XXXX, my policy number is # XXXX XXXX. Valid through XX/XX/XXXX, through XX/XX/XXXX. 

Mr. XXXX notified Freedom Mortgage that my homeowners policy for the period of XX/XX/XXXX through XX/XX/XXXX, had been canceled due to their failure to make the yearly payment as previously arranged. Up to this point, Freedom Mortgage had no idea that my homeowners insurance had elapsed. 

After the notification, Freedom Mortgage responded by sending me a letter stating that they were enacting a forced coverage of homeowners insurance of {$2000.00} US dollars as a penalty for not having homeowners insurance on my home. I notified Mr. XXXX who provided proof to Freedom Mortgage of my new nationwide homeowners policy and a copy of the check covering the period on XX/XX/XXXX through XX/XX/XXXX. 

Freedom Mortgage then demanded that I pay {$2000.00} US dollars or they were going to add this penalty to my mortgage payment. Freedom Mortgage was penalizing me, for a failure on their end, for not having homeowners insurance on my home during the period of XXXX. 

Freedom Mortgage has managed my escrow account for years ; they have always made my homeowners insurance and Utah State tax payments, as this was the arrangement we agreed upon when they took over my account. I have never made a homeowners insurance payment, or a Utah State tax payment, as Freedom Mortgage made those payments on a regular basis with no previous issues.

Freedom Mortgage illegally made me pay {$2000.00} US dollars as a penalty for not having homeowners  insurance due to their negligence ; it is their responsibility to manage my homeowners insurance payment and my Utah State taxes payments through my escrow account that they demanded I have when they assumed my mortgage. 

I have always made my mortgage payments and never been late on a payment, I even pay a little more than the mortgage payment when I can to help lower my mortgage interest. 

Neither XXXX XXXX, XXXX XXXX, nor Freedom Mortgage have helped me with this matter. I have sent numerous correspondences to Freedom Mortgage to return my {$2000.00}, to no avail. One of the Freedom Mortgage consumer service responses was that they could not help me in this matter and left it at that. This is why I am reaching out to the Consumer Financial Protection Bureau asking help. 

I would like my {$2000.00} US dollars returned to me that Freedom Mortgage illegally forced me to pay or suffer higher mortgage payments for a year ( XX/XX/XXXX-XX/XX/XXXX ) that had already ended/lapsed. 

Freedom Mortgage had no idea that my homeowners insurance has been canceled until XXXX XXXX   had notified them of my new nationwide policy. Their response was to penalize me for their mismanagement of my mortgage. 

My Utah State XX/XX/XXXX, property valuation of my home lists its taxable value at {$400000.00} US dollars, Freedom Mortgages last mortgage statement shows that I currently owe {$220000.00} on my home ; why am I forced to have an escrow account so that Freedom Mortgage can manage my homeowners insurance and State taxes? 

Freedom Mortgage has clearly demonstrated that they have mismanaged my escrow account and clearly punished me for their poor management of my mortgage. 

I want to be able to manage my homeowner insurance which is {$990.00} a year, it was lower under XXXX XXXX but due to Freedom mortgage I am paying just about {$100.00} US dollars more a year due to their failure to pay my homeowners insurance on XX/XX/XXXX XX/XX/XXXX, and my Utah State taxes last year were less than {$320.00} US dollars so all I have to save throughout the year to pay both my homeowners insurance and my Utah State taxes is {$1300.00} a year, which will be easy since my mortgage payment will be lower. I can put the {$110.00} US dollars they charge me each month into my savings account to cover the above. 


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