Consumer complaint received 2019-04-11
Company: Freedom Mortgage Company
State: IL
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
* XX/XX/XXXX Freedom Mortgage was notified in writing that out home was 100 % tax exempted and we asked the tax in escrow to stop being held. By Illinois state law from XX/XX/XXXX ( S.B 1427 ). Freedom Mortgage did not comply with this law until XX/XX/XXXX. 
* XX/XX/XXXX. We asked that the loan no longer be in escrow since we were still being charged the tax amount in violation of of S.B 1427. In the state of Illinois under act 765 ILCS 910/ Mortgage Escrow Account Act we have the right to cancel at anytime. Freedom Mortgage on XX/XX/XXXX denied that request, again unlawfully and not in compliance with state law and mandate. 
*We continued to pay through XX/XX/XXXX and which point the demand to forward all funds collected for the tax be applied toward any future payments, sent in writing. No response was given and than denied in XX/XX/XXXX. We filed a Federal complaint for abusive and predatory banking practices. 
* XX/XX/XXXX In speaking with Freedom Mortgage I was made aware of a unknown to the homeowners a Insurance policy from XXXX XXXX. 
*XX/XX/XXXX I called XXXX XXXX to find out about this additional above and beyond the insurance I already had. I was told by XXXX XXXX on XX/XX/XXXX that no such policy exists and has not existed. 
*XX/XX/XXXX I called back Freedom Mortgage and spoke to XXXX in the Insurance department where on their own recorded call. Confirmed that they had been collecting on this fraudulent policy, that they had in house paperwork showing that this policy had been cancelled from XX/XX/XXXX on a document she ( XXXX ) had received in XX/XX/XXXX. XXXX also went on to verbally confirm the company knowingly continued to take demand the monies to go into escrow for a non existing policy. XXXX also stated very clearly that they would continue to demand the funds irregardless of insurance policy or not. 
*XX/XX/XXXX I spoke to the mortgage division of Freedom Mortgage demanded escrow be closed and all funds be applied toward any and all outstanding payment. That they had been collecting these monies in a abusive and predatory manner and had committed insurance fraud. I was told that the company would not stop this practice but open a ticket. I additional provided all current Insurance information and proof of policy that had already been purchased and was not part of this abusive " escrow '' they had put on our account. 
XX/XX/XXXX I spoke with the DC Division of DISB- Division Of Insurance, Securities and Banking. I was at the time also directed by my investigator to file with Illinois State Attorney, the Illinois Division Of Insurance , Securities and Banking and The Illinois Department of Regulations which I did. The are investigating and have accepted my complaint based on per their conversation " Freedom Mortgage is clearly being abusive and predatory. Clearly in need of investigation and review of their license to do business in the state. " XX/XX/XXXX I spoke with XXXX from Freedom mortgage made sure to go over all my request based on state and federal law. I clearly on their own recorded call stated exactly what was desired by myself and XXXX XXXX XXXX that all extra fund be applied to any and all outstanding payments versus holding funds in a escrow that should not exist for no purpose but to be abusive based on their internal procedures and not the law. I was told they would open a ticket. I also asked that any and all comments and reporting on XXXX XXXX XXXX 's credit report be removed since they are demanding payment they already have along demanding payment that is incorrect and invalid since it included a non existent tax and fraudulent insurance. 
* The week of XX/XX/XXXX or XXXX we are tentatively set to speak with the investigative reporter from local news channel and the 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