Consumer complaint received 2020-03-24
Company: Freedom Mortgage Company
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Due to the current and unique COVID-19 situation, impacting the globe and the country, there is an impact on my families income ( Loss of ). I am sure that I am not unique in this regard and I reached out to Freedom Mortgage to see if there are any relief options or opportunities to work something out so that I can continue to stay current, and resume full payments when the situation resolves.Their website even includes a new banner which states that they understand the impact of coronavirus and that " Freedom Mortgage is committed to supporting our customers '' and if we have issues or are unable to pay to call them at the number they listed. 

As background, I have never been late or missed a payment and I did not choose Freedom Mortgage as my servicer ; they purchased my loan. 

I spoke with several representatives ( XXXX, XXXX and XXXX, XXXX ) and was concerned after hearing what they had to say. I was informed that Freedom Mortgage was offering a " special forbearance '' that would last for 3 months after which time I would need to resume my regular payments and immediately pay back the three months of " relief. '' I clarified this with XXXX and she confirmed again that this was the case. She even suggested that I try to make as much of the payment as possible each month so it is easier at the end of the 3 months to resume my regular payment and pay back what I owe for the previous 3 months. 

This " offer '' seems predatory and may be the opposite of relief. For consumers, like me, who are impacted by COVID-19 and, who need temporary relief, need it because they have a loss of income and temporarily may not be able to make the payments. After three months, assuming income has resumed, normal payments can resume as well but where will the money come from to pay for the 3 months of accumulated " relief '' that is now due immediately? When I asked this question. XXXX informed me that if I did not have those funds, I would have to enter a loan modification process and started to speak about loss mitigation etc. 

This " special forbearance '' is setting consumers up for failure in 3 months and seems like a predatory tactic as consumers, who can not pay now will owe even more in 3 months and will be even more unlikely able to pay. 

When I wanted to escalate this concern and speak to someone and possibly raise a complaint within Freedom Mortgage, XXXX informed me that she was not aware of a way I could file a complaint. I asked if they had a complaint handling process and she said she was not aware of any and wasn't sure about how I could do so. At the end, she said she would not it in my file and then she provided me with a customer service email address that she said I could try writing to. 

Bottom line is I, and I am sure many other consumers find themselves in a temporary difficult situation, and would like some help getting through this difficult time impacting the entire country and globe. Freedom Mortgage seems to be using the opportunity to put Customers into more difficult long term situations ( many of the customers, who like me, who did not even choose Freedom but became customers because of their purchase ). 

Thank you

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