Consumer complaint received 2018-05-10
Company: Freedom Mortgage Company
State: NY
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX our mortgage broker at XXXX XXXX negotiated a 30-day rate lock with Freedom Mortgage at 4.375 % with the cost of 1.092 % ( points ) to obtain the rate. We have written verification between us and the broker. The broker has phone records between XXXX and Freedom Mortgage as they verbally went through the process with Freedom Mortgage. 

On XX/XX/XXXX we received an email from Freedom Mortgage with secured documents to sign and verify. When we observed the paperwork our cost to close increased by over {$16000.00}. Freedom Mortgage listed in their disclosure that a cost of 3.776 % ( points ) would be needed to obtain the 4.375 % rate. 

On XX/XX/XXXX when our broker contacted Freedom Mortgage they claimed it was a " computer error '' that displayed the 1.092 % rate. There was no contact with the broker on this " error '' between XX/XX/XXXX and XX/XX/XXXX. There was no documentation sent to the broker after a verbal walk-through of the numbers upon locking the rate. We were sent documentation by Freedom Mortgage to sign, lock, and prepare to close without the primary negotiator, our broker, being notified. 

We find this highly problematic that Freedom Mortgage ( 1 ) did not notify the broker responsible for the transaction of this " error '' ( 2 ) did not disclose any error to us ( the loan recipient ) and ( 3 ) blame it on a computer error though Freedom Mortgage verbally confirmed the entire process with our broker AND avoided any contact with the broker afterwords. This contact is considered, by me, to be phone or email. 

Freedom Mortgage was contacted on XX/XX/XXXX and will not return to the agreed upon terms of the week prior. We are now paying 1.3 % ( points ) to move our rate down to 4.6xx %. This is and increase in closing costs, an increase in monthly payments, AND an increase in overall payments to Freedom Mortgage. We have a contractual closing date to meet and this tactic is basically forcing us into worse terms and greater benefit for them. 

Overall, I am concerned with the " bait and switch '' tactic employed by Freedom Mortgage when they provided terms, verified terms, changed terms, and did not disclose the change until a document had to be verified a week later. Personally, I do not believe it is a " bait and switch '' but rather Freedom Mortgage reneging on an agreed upon rate. If I were to do that with my mortgage they would seize my property. 

I am also concerned with how many others may have been affected by this " computer error '' ( if there even was one ). On any given day I could only assume hundreds, if not thousands, of people come to terms with Freedom Mortgage. If they employed the same tactic with others, were the customers aware of the change when they signed the papers? Did they feel pressured to sign because a mortgage, even at a higher rate, is better than no mortgage?

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