Consumer complaint received 2019-11-22
Company: Freedom Mortgage Company
State: AR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
For whatever reason Freedom Mortgage refused to acknowledge when a loan reaches a 78 % loan to value and the payments are current on the mortgage that PMI Per the Homestead Protection ACT that PMI is required be deleted automatically. Freedom Mortgage never wants to address this part of the Homestead Protection ACT .When I sent my XXXX towards principal based on my math since Freedom Mortgage refused to give me a figure as how much it would need to get my loan to 78 % Loan to value. Based on my current loan as Freedom Mortgage points out is over XXXX, well of course it is because I gave up on trying to get rid of PMI when loan to value was at 78 %. so I requested my $ XXXX be be returned to me which they did. 

Automatic Termination of PMI A servicer must automatically terminate PMI for residential mortgage transactions on the earliest date that both The principal balance of the mortgage is first scheduled to reach 78 percent of the original value of the secured property ( based solely on the initial amortization schedule, in the case of a fixed-rate loan, or on the amortization schedules, in the case of an adjustable-rate loan, regardless of the outstanding balance ) and The borrower is current on mortgage payments. 
If PMI is terminated, the servicer may not require further payments or premiums of PMI more than thirty days after ( 1 ) the termination date or ( 2 ) the date following the termination date on which the borrower becomes current on the payments, whichever is sooner. 
There is no provision in the automatic-termination section of the act, as there is in the borrower requested PMI cancellation section, that protects the lender against declines in property value or subordinate liens. The automatic-termination provisions make no reference to good payment history ( as prescribed in the borrower-requested provisions ) but state only that the borrower must be current on mortgage payments. 
Final Termination If PMI coverage on a residential mortgage transaction was not canceled at the borrowers request or by the automatic-termination provision, the servicer must terminate PMI coverage by the first day of the month following the date that is the midpoint of the loans amortization period if, on that date, the borrower is current on the payments required by the terms of the mortgage. 
The servicer may not require further payments or premiums of PMI more than thirty days after PMI is terminated. 


First, Freedom Mortgage has yet to address all the conflicting information I was givnen when I was calling trying to gather information in order to get rid of PMI ; some of the information given through me calling, I had to keep PMI through 2026, PMI does not delete automatically at 78 % Loan to value and payments current, As I stated I emailed Freedom Mortgage the copy of the Homestead protection ACT concerning loan to value at 78 % is deleted auto if payments are current. Freedom Mortgage keeps replying with a loan to value of 80 % loan t value which there are much more requirements at 80 % Loan to Value than if the loan is at 78 %. 

On XXXX XXXX I spoke with a Title company which is working on my closing, she informed me she was transferred to 3 different people or different departments in order to try and get a payoff.which she said took her and hour or or more. 

The bottom line Freedom Mortgage is servicing my loan and I get different answers or get placed on hold like the Title Company. For future Borrowers I home they are made aware of these problems and think twice about entering into a application with Freedom Mortgage. I should mention I have had 3-4 or more Mortgage loans in my lifetime and never had so much problems with a Mortgage Company, I hope this helps anyone who read this to look elsewhere for a Mortgage loan.I hope this help future homebuyers not make a mistake and go with Freedom Mortgage!

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