Consumer complaint received 2016-09-15
Company: Freedom Mortgage Company
State: MI
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
XXXX XXXX, XXXX Freedom Mortgage is not applying principal only payments to my mortgage balance. My mortgage was sold to Freedom Mortgage ( FM ) XXXX XXXX. The beginning Mortgage balance was {$120000.00} when FM obtained the mortgage. 
Phone call to Freedom Mortgage Sat XXXX XXXX XXXX. 
Issue - Principal only payments had not been applied to the principal. 
A FM representative gave me some options, one option was to return my principal only payments. The options offered were unacceptable and I asked to be transferred to a manager. Instead of reaching a manager, I was transferred to XXXX in the Escalations Department. She was not helpful and often interrupted. I explained the principal only payments I made were not applied to the principal only. Those principal only payments were sent from XXXX XXXX XXXX bill pay in the amounts of {$3000.00} XXXX/XXXX/XXXX confirmation # XXXX, {$2000.00} XXXX/XXXX/XXXX confirmation # XXXX and {$1000.00} XXXX/XXXX/XXXX confirmation # XXXX. I stated FM had given me the principal only payment address to send online Principal only payments from my XXXX XXXX XXXX bill pay. I informed XXXX, I called back and spoke with a second FM representative to double check the address to ensure it was correct. XXXX said she had never heard of that address. I said it was not logical that XXXX FM reps had given me the same address and the payments were going to FM ; one was applied to the principal only. She asked if there was anything else she could do for me. I responded yes ; however, she hung up on me. 
The other issue was the a Monthly auto draft which I had set up with F M as an auto draft in XXXX XXXX for the amount of {$1200.00} with regular P & I payments of {$1100.00} and {$100.00} principal only. I established auto draft to ensure all payments would be correctly and timely processed. This also was incorrectly done for the XXXX XXXX XXXX payment. 
The regular Monthly XXXX XXXX house payment had not been applied. On XXXX XXXX FM incorrectly paid {$1000.00} to Principal, {$100.00} to Principal and {$130.00} to P & I and resulting in the house payment of {$1100.00} not applied. I was not able to address this since XXXX hung up on me. I called back and asked for a Supervisor. I was told I would receive a return call from a Supervisor. 
Monday XXXX XXXX, I received the return call. I went over each principal payment incorrectly applied and asked they be correctly applied on the dates I had specified and not on a later date, to avoid paying more interest than necessary. 
Those principal only payments were sent from XXXX XXXX XXXX bill pay in the amounts of {$3000.00} XXXX/XXXX/XXXX confirmation # XXXX, {$2000.00} XXXX/XXXX/XXXX confirmation # XXXX and {$1000.00} XXXX/XXXX/XXXX confirmation # XXXX. 
I informed the FM supervisor the auto draft XXXX XXXX XXXX incorrectly paid {$1000.00} to Principal and {$130.00} to P and I ; making an incomplete house payment to P & I and applied {$100.00} to Principal. I informed him the Monthly paper statements I receive do not match the Loan Overview online. Example the statement dated XXXX/XXXX/XXXX shows payment due XXXX/XXXX/XXXX and the loan overview online shows the next payment due XXXX/XXXX/XXXX. Both do not reflect payments posted properly. 
I asked to be sent an amortized itemized listing with corrections showing the beginning balance, date of regular payments and all additional principal only payments reflecting the running balance. I mentioned the conversation to him and I was hung up on by XXXX in the escalations Department. The supervisor said the corrections would be completed in two days, XXXX XXXX, XXXX and the itemized accounting statement. 
XXXX/XXXX/XXXX I received the alleged corrected itemized mortgage statement which is INCORRECT. The principal only payments have not been applied. I need the corrected itemized statement today showing the mortgage balance for each payment, both Principal Only and P & I payments.

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