Consumer complaint received 2016-12-13
Company: Freedom Mortgage Company
State: SC
Product: Mortgage
Sub-product: VA mortgage
Issue: Application, originator, mortgage broker

Complaint:
In XX/XX/2016, I received a solicitation from Freedom Mortgage to refinance my existing loan where my interest rate would be lowered, along with my monthly payment, through the VA Streamline Refinance Program. My new loan would have the same remaining term as the current loan. With the Streamline program, " there are no closing costs and no appraisal is required. '' On the reverse of the solicitation it states : " We will transfer your escrow account balance from your current loan to your new loan. If your current escrow account is insufficient due to changes in taxes or insurance, we may require additional money when you close on your new loan. '' I wanted to refinance and I completed the required application. My loan officer was XXXX. We closed on the loan on XX/XX/2016. The attorney who closed the loan did not have copies for us and I did not receive copies of any document my wife and I signed until approximately three weeks after the closing. At the time I closed on the loan, my escrow balance in my old loan with them was {$3000.00}. I have documentation to support the amount that was in escrow. 
After I finally received copies of the loan closing papers and when I received my XX/XX/2016 mortgage statement from Freedom Mortgage, I realized a serious error had been made. Freedom Mortgage only transferred {$1000.00} from my escrow account to the new loan. I did not know where the difference, {$1700.00} went and I immediately called the customer service center on XX/XX/2016 to find out why only {$1000.00} was transferred and not {$3000.00}. I was told to contact my loan officer. I called and left him a voice mail and I also sent him an e-mail outlining my complaint, looking for an explanation of why the difference in the amount transferred between the old account and the new account. 
I telephoned the loan officer on XX/XX/2016 and spoke to XXXX and was told someone from the " recovery department '' would be contacting me. On XX/XX/2016 I was contacted by XXXX and I had to prove to him that I had wind and hail insurance coverage. Freedom Mortgage overlooked an existing insurance policy that I had on my home and did not factor it in when they were doing the workup on the refinance. They only considered the homeowner 's policy. XXXX transferred my complaint to XXXX I have had several phone conversations, written a number of e-mails, and I have not been given an explanation as to where my escrow money went. 
On XX/XX/2016 I received a telephone call from a Freedom Mortgage customer service representative to advise me of an escrow shortgage and that my payment was going to go up. I told them I knew about it because when I refinanced my loan, a good portion of the escrow money was not transferred. He put me on hold and came back on the line and said that the escrow money that was not transferred was used to payoff my old loan and that I had signed a paper at closing agreeing to it. I told him I signed no such document. I also informed him I had written to XXXX. Middleman, CEO of Freedom Mortgage, outlining my complaint and asking for a review of my complaint. 
I wrote to Mr XXXX Middleman on XX/XX/2016 and have not had a response or acknowledgement of my complaint.

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