Consumer complaint received 2016-12-21
Company: Freedom Mortgage Company
State: PA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Credit decision / Underwriting

Complaint:
On XX/XX/2016, I decided to take advantage of a no-cost refi. I 've only been in my house/mortgage for a little over 2 years, but the idea of lowering the interest rate and monthly payment, even marginally, was attractive to me at zero cost. I called in, spoke to someone at my mortgage company ( Freedom ) by the name of XXXX. I happened to know al of my vital information such as credit score and LTV because it 's something I track personally. I shared all of this information before giving XXXX permission to pull my credit report and he shared some preliminary figures and rates based on that information that made it seem attractive enough to move forward. He told me the rate would be lowered from 4.5 % to 4.25 % and the monthly payment would be reduced by somewhere around {$270.00}. I gave him permission to proceed, he got my credit score, right where I shared it 'd be, and he confirmed everything was good verbally and the figures he had shared were still good before the call ended. 

Later that same day, I got an email explaining that the interest rate would not be changed at all, that he could n't get the interest rate approved based on my credit score. This was a problem for me and after he was unable to resolve it I asked to speak with his manager. He did n't move the interest rate at all, but said I could still some how save {$150.00} per month because of escrow changes and the mortgage insurance changes. Though extremely disappointed, and without plans of letting the interest issue go, I moved forward and signed disclosures. 

The appraisal came back $ XXXX lower than he had anticipated ( though where I had shared I had felt it would be when we first talked by phone ) and he emailed me and told me the refi would n't make sense now because the mortgage insurance was going to remain on the monthly payment. I was really disappointed, even more than originally, because I had shared all of this information before my credit was even pulled. He had all the data he needed to tell me it did n't make sense in the first 5 minutes of us talking. I asked to talk to his manager or compliance and heard nothing once again. I left a voicemail for his manager at this point I believe and a call was not returned ( Manager name : XXXX ) I then randomly heard from a closing coordinator that I was never introduced to by the name of XXXX who by no explanation said the interest rate would be moved to 4.3 %. She shared a monthly payment with me at that time, too. I do n't remember it, only remember it was different than what had been told to me along the way. She also told me that my mortgage insurance would fall off of my payments in just a few months ( which was confusing to me because the LTV was 86 % but she assured me of this when I asked her if she was sure ). I 'm moving forward at this point and get moved to a closing coordinator. His name was XXXX. XXXX by email told me the monthly payment on the most recent paperwork he had showed {$1900.00} with mortgage insurance for years 1-4. He told me to expect paperwork soon. The day before closing came and I had no new paperwork so I called Freedom and talked to a woman whose name I did n't jot down. She assured me several times the {$1900.00} per month and 1-4 years of mortgage insurance was accurate. She used the word 'promise ' I believe. An hour later, the notary who is set to close with me today calls with {$2100.00} per month, with mortgage insurance for years 1-6 or 7. I called Freedom this morning, 3 hours before my closing appointment, and they referred me back to XXXX. I left another VM for XXXX this morning and have n't heard back from him. There are either huge holes in this company 's refi process, or they intentionally gave me these numbers until the 11th hour to avoid me shopping competitors. I feel completely mislead and forced to close today because I 've budgeted for XXXX assuming I 'd skip that mortgage pmt.

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