Consumer complaint received 2018-07-03
Company: Freedom Mortgage Company
State: TX
Product: Mortgage
Sub-product: VA mortgage
Issue: Closing on a mortgage

Complaint:
XX/XX/XXXX my husband and I closed on VA mortgage. The loan was sold to Freedom Mortgage shortly there after. 
XX/XX/XXXX we refinanced our VA loan via the IRRRL through the VA and serviced by Freedom Mortgage. 
XX/XX/XXXX I received a notice from Freedom Mortgage informing me that the mortgage was not insured and I needed to begin paying Mortgage insurance on our home loan. 
I immediately called Freedom Mortgage to inquire and was told that there was a computer entry error and all of their systems indicated it was a conventional loan but the loan documents reflect a VA loan. I was told that it would be corrected and if there were any issues I would be contacted. 
I became behind on my mortgage due to a divorce so I contacted Freedom Mortgage about a VA loan modification or another IRRRL. I was told again that I did not have a VA loan. To this date I have been unable to gain assistance either by modification or IRRRL. 
Over the past three months I have spent hours on the phone with Freedom Mortgage. 
Of the numerous representatives that Ive spoken with, below is a list of the most important contacts at Freedom Mortgage XXXX XXXX ID # XXXX. He said the loan was mis-entered and would send a note to have it corrected to reflect a VA loan. 

XXXX XXXX-was told that our loan was not approved for the IRRRL because my husband and I divorced XXXX. I told her this was incorrect and directed her to the VA funding guidelines Section 6 IRRRL- ( Ive also spoken with a rep from the VA that confirmed we did qualify for the IRRRL because even though we were divorced, my ex-husband remained on the loan and agreed to apply his VA benefits. ) XXXX transferred to her manager XXXX XXXX XXXX XXXX XXXX ID # XXXX Direct telephone # XXXX XXXX reviewed loan and confirmed it was not a VA loan. Escalated the issue to his VP XXXX XXXX. 

XXXX XXXX XXXX confirmed that Freedom Mortgage dropped the ball on our loan and did not submit it to VA within 72 hour as was required. Now because the loan is delinquent VA will not guarantee the loan. Found that the issue occurred in the XXXX Department He also explained that if the error occurred in his department, Servicing hey would use their discretionary funds to bring the loan current then submit to VA for insuring. He would call me when he had an update. 

XXXX XXXX XXXX-said there was no update but legal is working with the Guarantee department to identify the options available and would have an answer by noon the following day. 
Since that call I have not received an update or call back from XXXX. 
XXXX -XXXX  XXXX-CEO of Freedom Mortgage. I left a message with his Executive Assistant XXXX XXXX, and asked for a call back. 

XXXX XXXX XXXX-Senior VP- XXXX X XXXX XXXX returned my  request for a call that I left for Mr . XXXX. XXXX blamed me and said XXXX XXXX  XXXX was harmed because the loan is not insured by the VA. I told her I have been harmed because I no longer have VA loan benefits or assistance. I can not get a VA ReFi or any other assistance from the VA because the VA does not show I have a VA loan. The VA confirmed with me that our loan was never submitted to the VA. 

XXXX said that she was going to speak with XXXX XXXX and get back with me. 

I have researched similar issues with XXXX XXXX XXXX ( XXXX ). The US Attorney General and DOJ sued and won a case again FMC for mishandling of FHA loans. There is also a recent XXXX XXXX  that indicates the Government is considering disallowing FMC and others from servicing and Refinancing VA loans because of their negligent mishandling of loans. 

There are also multiple individual suits again FMC for similar issues. Recently, in NJ a Judge ruled on behalf of the plaintiff and won the suit against FMC for loan fraud. Again, a similar issue. 

I am a single mom of XXXX small children. I live on a very tight budget so that I can afford a home and necessities for my family. I do not have the money to hire an attorney to help me deal with XXXX Mortgage. 

Any assistance you can provide would be greatly appreciated. 

XXXX Regards, 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