Consumer complaint received 2023-04-28
Company: Freedom Mortgage Company
State: OH
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
Unfair, deceptive, or abusive business practices of Freedom Mortgage Company. 

We had water leak in our kitchen back in XX/XX/XXXX. After debating with our homeowners insurance company, XXXX, for payment for over a year, a check was finally released in XX/XX/XXXX to both myself and husband and our mortgage company - Freedom Mortgage. Freedom Mortgage is not releasing the funds in a timely manner to allow us to pay for materials or labor costs to our contractor. Every time we call and speak to the Loss Department... we are told something different as to what is needed for the funds to be released. Their website nor the packet they provided to us provides clear guidance/steps as to how the loss process will work or provides any information as to when or what determines the amount ( % ) of funds which will be released. The process should be clear, standard so their customers can properly plan for their repairs. 
_____________________________________________________________________ According to the Freedom Mortgage 's website : XXXX XXXX XXXX 
" For losses of more than {$40000.00}, you will need to send us the claim check, which we will deposit in a restricted escrow while we monitor the progress of your home repairs. Please be sure to endorse the check before you send it to us. 

Well also ask for the adjusters report, signed and accepted proposals from your contractors, and other documents. 

Once we have all these documents, well explain to you how the funds in your escrow fund will be paid out and how we will monitor the progress of repairs and confirm they are complete. 

Funds from your escrow account are typically paid in stages, beginning with an initial payment followed by additional payments. If there are funds left in the escrow account after the cost of all the repairs have been paid, these funds will be sent to you. 
_____________________________________________________________________ All the required paperwork as instructed was provided plus estimates, contracts, photos, and receipts demonstrating status and why more funds are needed. The adjuster 's worksheet states scope of work is for dwelling - kitchen includes drywall, painting, replacement of baseboards, cabinets, backsplash, and countertops. 

We are requesting the repair funds to pay for only kitchen repairs material and labor costs. The check from XXXX XXXX XXXX sent was for {$79000.00} for Kitchen Repairs Material Cost of cabinets : {$59000.00} + XXXX ( Shipping ) = {$60000.00} - Invoice # XXXX was provided Cabinet hardware : {$650.00} - Invoice # XXXX was provided. 
Countertops/backsplash : {$15000.00} - Invoice # XXXX was provided. 
Total : Before labor cost {$76000.00} ( leaves a remaining balance of {$3500.00} the funds ) Kitchen Labor Costs : Painting, cabinets installed, and drywall repair costs are well over the remaining {$3500.00} Initial draw received from Freedom Mortgage : {$40000.00} We paid {$30000.00} initial deposit on cabinets to order ( Shown on invoice # XXXX ) We paid {$10000.00} initial deposit so contractor starts work ( Shown on invoice XXXX ) ( we paid {$330.00} own money ) Balance : ( - {$330.00} ) *The amount provided didn't even cover anything on Invoice # XXXX balance {$15000.00} ( we paid {$12000.00} own money ) Kitchen tasks completed : 1. Drywall repair/painting/electrical/plumbing is complete 2. Cabinets and hardware delivered, installed, and complete 3. New appliances have been delivered 4. Countertops and backsplash have been ordered Kitchen tasks still pending : 1. Countertop and backsplash installed 2. New appliances installed We have the money to cover costs out of pocket but what about consumers who don't. In addition, what would happen to these small businesses if they are not paid in a timely manner?

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