Consumer complaint received 2021-12-09
Company: Freedom Mortgage Company
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
We are filing a complaint against Freedom Mortgage Corporation regarding the transfer of our VA loan from XXXX XXXX XXXX XXXX We did a refinance with XXXX  XXXX XXXX XXXX in XX/XX/XXXX. At the time of the Refinance, we were told that we needed to pay our homeowners insurance and property taxes for the year so we were charged at the close of escrow of our refinance under our closing disclosure homeowner 's insurance of XXXX per month for XXXX months for a total of {$940.00} and property taxes of {$620.00} per month for XXXX months for a total of {$2500.00}. So after all this was charged. There was no need for a impounded escrow account with XXXX XXXX XXXX XXXX or Freedom Mortgage Corporation. We had no idea that XXXX XXXX XXXX was going to transfer this refinanced loan to Freedom Mortgage Corporation until it was actually done. Freedom Mortgage Corporation then charged us under a impounded escrow account for property taxes and insurance of {$730.00} a month from XX/XX/XXXX to XX/XX/XXXX. In XX/XX/XXXX, We spoke to Freedom Mortgage Corporation and told them that wanted the escrow account closed and we also send an email regarding this. So we only paid the amount of our mortgage payment of {$1500.00} for the month of XXXX. They took the payment and put it in an unapplied account because they want us to continue to pay something we do not owe. Our homeowners insurance is paid up until XX/XX/XXXX. And Freedom Mortgage Corporation has more than enough money to pay our last property tax payment due by XX/XX/XXXX, we told them to pay that and close the escrow account. We never asked for it, We do not want it. And we do not need to give anyone our money to charge us interest on bills we can paid directly ourselves and avoid anyone making large amounts of unnecessary interest. This is totally ridiculous and down right stupidity. We then receive a letter dated XX/XX/XXXX stating they received our request and then stated we received your payment of {$1500.00} on XX/XX/XXXX, which was placed in unapplied funds the payment hierarchy requires a full payment to be received before a payment can be applied to the due date. Partial payments received will be placed in unapplied funds. ( UAF ) are payments that have been received but have not yet been posted to the account because the amount received is not sufficient to make a full payment. The funds are held in a UAF until additional funds are received to satisfy a full payment. Once a full payment has been received, the funds will be removed from UAF and applied to the account. Please submit a payment of {$730.00} to complete your payment for the XX/XX/XXXX due date. Enclosed is a copy of your payment history for your records. This is verbatim from the company Freedom Mortgage Corporation in the letter dated XX/XX/XXXX, as previously stated to you above. We will not be paying any more money toward any impounded escrow account for this loan. We never requested an impounded escrow account nor do we need or want one. We will take care of our own bills regarding homeowners insurance and property taxes that due on a monthly and yearly basis. Your prompt and courteous response to this matter will be most graciously appreciated.

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