Consumer complaint received 2018-07-31
Company: Freedom Mortgage Company
State: MD
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
Both my loan Closing Disclosure Statement as well as my Initial Escrow Disclosure Statement list that included in my escrow is a " front foot fee. '' Specifically on page 1 of my Closing Disclosure Statement it shows that my estimated escrow is {$640.00} a month and it shows that it includes property taxes, homeowners insurance, and Other : Front Foot Fee. The breakdown of the {$640.00} a month includes XXXX XXXX/month in homeowners insurance ; $ XXXX/month in property taxes ; and $ XXXX/month for the front foot fee ( totaling the {$640.00} a month I pay into escrow ). My loan was initially through XXXX XXXX, but was immediately sold to Freedom Mortgage. 

My front foot fee is {$700.00} annually. At the end of XXXX, 2018, I received a bill in the mail for {$220.00}, which is the first portion of my annual front foot fee. I called Freedom Mortgage on XX/XX/2018 at XXXX XXXX  and spoke to XXXX, ID # XXXX. I explained that the Closing Disclosure statement shows that the front foot fee is included in the escrow. After telling me that nobody there even knew what a front foot fee was, he said he would open a ticket and look into it, but I should fax the information to the tax department at XXXX with a copy of the bill. I did so the same day. I never received a response. 

At the beginning of XX/XX/2018 I received a bill dated XX/XX/2018 for {$480.00}, which is the second portion of my annual front foot fee. I called Freedom Mortgage on XX/XX/2018 at XXXX XXXX and spoke with XXXX, ID # XXXX. XXXX, much like XXXX, kept insisting that Freedom Mortgage does not pay this bill, that I do, but once I showed him the Closing Disclosure Statement he agreed with me that yes, it should be included in my escrow amount, he told me he was opening a ticket and I should email the bills and a description to XXXX. He said the ticket should be closed by XX/XX/2018. I emailed the information the same day, and received email confirmation that they were reviewing my information. 

After not hearing from Freedom Mortgage by XX/XX/2018, 10 days after I was told the ticket should be closed, I called Freedom Mortgage again on XX/XX/2018 at XXXX XXXX and spoke with XXXX, ID # XXXX. He said they should have sent me a letter denying payment as unable to process due to the bills being utility bills. I asked him to provide me a breakdown of what my monthly escrow payments went toward, which he attempted to do so, but the amounts did not add up to {$640.00}. I pointed out to him page 1 and 4 of my Closing Disclosure Statement, where it shows that the front foot fee is included in my escrow statement. He reviewed that document as well as the Initial Escrow Disclosure Statement ( where it shows a property front foot benefit of {$700.00} annually ) and agreed with me that the documents do show that the front foot fee is included in my escrow and should be paid by Freedom Mortgage. He said they would have to pay bill or refund the money. I told XXXX that if they refund the money that I would request that they include extra money for the interest that has accrued at 1.5 % per month on the unpaid balances on those unpaid bills that I gave Freedom Mortgage sufficient time to pay for. XXXX told me that either him or his supervisor XXXX would call me back that day, or the very next day. I never received a phone call. 

On XX/XX/2018 I received a letter in the mail from Freedom Mortgage dated XX/XX/2018 saying that they reviewed my " property tax '' inquiry and that " the correspondence we received is a utility bill issued by XXXX XXXX County.  Please be advised that utility bills are not included in your mortgage and is the responsibility of the homeowner. '' This letter alone makes clear that they did not conduct a thorough review because I never once inquired about property taxes, and neither front foot bill is from XXXX XXXX County -- one is from XXXX XXXX , XXXX, and the other is from XXXX XXXX XXXX XXXX, XXXX. While the first bill is vague as to what the charge was for, it did say that " your mortgage lender may have escrowed funds for the payment of these charges. '' The second bill clearly states in the description that it is the " Annual Front Foot Assessment for XX/XX/2018 - 18 Years Remaining. '' On XX/XX/2018 I called Freedom Mortgage at XXXX XXXX and spoke with XXXX, ID number XXXX. I explained everything thoroughly to her. She said they are resolving the issue by issuing a refund to me in the amount of {$2600.00} as there was extra money in our escrow account. I told her that a refund of money we paid in does not resolve the issue as this is going to be an annual issue for the duration of the front foot fee, and that if my loan specifically says they will pay the front foot fee that they need to pay it. Furthermore, I gave Freedom Mortgage sufficient time to pay the bills, which they refused, and the unpaid balances accrue a 1.5 % per month, 18 % per annum interest fee if unpaid, which has been accruing. In other words, refunding the money that Freedom Mortgage has been taking from me monthly, that is rightfully mine, does not cover the interest that Freedom Mortgage should pay since they should have paid the bill from the beginning. XXXX told me that Freedom Mortgage never pays Front Foot Fees, and I told her that they bought my loan from another company, but they have been collecting the front foot fee in my escrow, so they need to pay it. She said she would open another research ticket, but given the lack of responsiveness in the prior interactions I am not hopeful.

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