Consumer complaint received 2023-11-02
Company: Freedom Mortgage Company
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process
Sub-issue: Payment process

Complaint:
My mortgage payments increased in XXXX of XXXX based on added insurance payments. Freedom Mortgage did not send me a letter through physical mail of this critically important document stating the new, higher mortgage payment amount. They claim to have emailed me at an old email address that I no longer use. Freedom Mortgage purchased my mortgage from XXXXXXXX XXXX XXXX and they probably received the old email address from them. I tried to update my email address with Freedom Mortgage and it took months for them to finally update it so I could log into my Freedom Mortgage account with my current email address. As of just a month or two ago, I can finally log in. However, this was just one issue. The bigger issue follows next. 
Freedom Mortgage increased the monthly payment in XX/XX/XXXX due to the added insurance amount. When I received a letter that they didn't receive my full payment, I called the company and paid the extra amount they told me I owed. This was I believe in early XXXX. I have also adjusted my monthly payments to the higher amount after the agent advised with the new monthly amount on our call. However, ever since the insurance has been added, they have been misapplying funds between the escrow account for insurance and the mortgage amount ( principal + interest ). I have been contacting Freedom Mortgage every single month about this when I receive their physical letter that they didn't receive my mortgage payment, which, they receive every single month as I have had my mortgage on auto-pay since they purchased my loan from XXXX XXXX XXXXXXXX. I also had added the additional amount they told me to pay every single month. I was promised last month by the agent that answered my call, about XX/XX/XXXX, that they found the issue, they were misapplying my payments between the mortgage and the escrow for insurance and this was causing the problem. The agent I spoke with on XX/XX/XXXX said that I had to pay an extra $ XXXX to bring my account current, which I paid that day, yet, I log into my account today and even though they received my XX/XX/XXXX payment, it says that I owe another payment of yet another entire mortgage payment and then some. I have always, always paid my mortgages in full payments, on auto-pay, every single month, my entire life. I had an over XXXX credit score as I pay all my bills on time every single month. I also spoke to Freedom Mortgage 's credit department, as they reported me to the credit bureaus for not paying my mortgage on time, which I have been paying on time and I paid the extra I owed as soon as I found out that I owed an extra amount, I increased my automatic monthly payments based on what they had stated as the new, higher monthly payment amount, and I paid an extra $ XXXX last month because the agent promised that this was the issue that was causing the misapplication of funds that somehow my escrow account was short, even though I pay double the monthly amount they pay out for insurance, as they said this would bring my escrow account into balance. Their credit department agent made all these notes after supposedly they fixed the payments misapplication issue on their end last month. The credit department agent promised that they would be mailing me a letter with the resolution about my credit as they have been messing up and that I should be receiving the letter in two week. I still haven't received the letter and it is XX/XX/XXXX, three weeks later. Freedom Mortgage is messing up my credit because they can not seem to fix their payments misapplication issue on their end. They need to cancel/rescind all their credit reports about my mortgage account as I have been making my monthly payments based on their communicated higher amount every single month. I even paid extra amounts twice, in XXXX and on XX/XX/XXXX as the agents on these to occasions advised that this would fix the issue and bring me current. I just called them again this morning and their agent hung up on me or got disconnected and it's been over an hour and they haven't contacted me back. I guess I have to call them again and deal with the same insane issue all over again, just like every single month, how they misapplied my payment again. This company employs people that clearly do not know what they are doing or how to fix their payments misapplication issue on their end between principal + interest and escrow accounts. I have zero confidence left in this company. I have been contacting them every single month, they promise they fixed the issue every single month and nothing happens. I work a full-time job, have a family and this is extremely time-consuming to have to deal with the same mistakes they make month after month. This company should probably not be allowed to purchase mortgages and to operate. I am in disbelief on how a mortgage company can be so inept in fixing a problem that they create on their end every single month by misapplying my payments and sending me letters that they didn't receive my payment when my payment is on auto-pay and they do receive it every single month, in full, based on what they communicated as my new, higher monthly mortgage payment amount. Please, please, please help!

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