Consumer complaint received 2019-03-12
Company: Freedom Mortgage Company
State: MN
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
In XX/XX/2019, I paid off my remaining mortgage balance of {$220000.00} through four {$50000.00} payments initiated through a customer service representative at Freedom Mortgage and a {$24000.00} wire transfer that Freedom Mortgage instructed I submit per the payoff statement they provided me. I went to my bank after receiving a payoff statement from Freedom Mortgage and sent a final wire transfer payment of {$24000.00} on XX/XX/2019. I was able to confirm everything was received through reviewing my account on-line with a Freedom Mortgage representative to confirm that everything was applied to my principal. Additionally, the representative confirmed on XX/XX/2019 that my account was closed out and my automatic monthly payment removed, as nothing else was owed. I took screen shots of the payments applied, as illustrated on their website. Then I received a letter dated XX/XX/2019 that indicated my pay-off was complete, my mortgage release documents were being processed and will be mailed to the County Clerk and that I should notify my insurance company and county tax authority to begin mailing statements directly to me. Additionally, I received a check dated XX/XX/2019 for my escrow ( taxes and insurance ). Then I arrived home from business & personnel travel on XX/XX/2019 and opened a new statement from Freedom Mortgage indicating I had a balance of {$51000.00}. I called Freedom Mortgage immediately the next day to try to understand what had happened. They indicated that my bank retracted a {$50000.00} payment on XX/XX/2019, and they re-instated my Loan account. They also added accrued interest and late payment charges. This story seemed far-fetched given my finance background, so I went online to review my XXXX bank statement only to notice that 3 {$50000.00} payments were pulled from Freedom Mortgage rather than the 4 I had authorized. As a result, I called Freedom Mortgage to tell them that something happened on their end since it showed they had collected all 4 payments but they had not pulled the last one from my bank. Then I set up a conference call with the customer service representative from Freedom Mortgage, my bank and I, as Freedom Mortgage continued to blame me and my bank for the mishap. Freedom Mortgage continued to tell me that I owed the accrued interest and remaining balance due. My bank told them that no fourth withdrawl of {$50000.00} was initiated by Freedom Mortgage, so Freedom Mortgage decided they would review the recorded authorizations they had on file with me & their service rep ( on XX/XX/2019 ). After reviewing the recording, they FINALLY agreed it was their fault and they will reverse the accrued interest. I told them I agreed that I owed {$50000.00} but no more ( no interest ) and they can pay my second wire transfer payment and any other fees to perform a 'second ' payoff. I requested a formal letter and payoff indicating that the only remaining amount I owe is {$50000.00} with no accrued interest or other fees, including that they will reimburse me for the second {$30.00} wire transfer I now have to pay my bank. Since this discussion on Thursday, XX/XX/2019, the payoff nor a letter has been sent to me to rectify the situation. I also had to place a stop payment with my bank to not pay the mortgage payment set to withdraw on XX/XX/2019, as I found out Freedom Mortgage illegally set up an automatic withdrawl from my bank after they re-instated my account on XX/XX/2019 without even contacting me to tell me they were re-instating it. I have been fully willing to wire the {$50000.00} as a final payoff but want a formal document from them stating it is my final payoff. Supposedly they are still 'working on it ' to resolve this issue ( since XX/XX/XXXX once they finally believed me ), but now I'm worried that I appear in 'default ' on my loan since I put a stop payment to Freedom Mortgage with my bank and worried my credit score will be in jeopardy, when ironically I was the one paying off my mortgage in full. Each day I talk with them, they ask for another day and they have not let me speak to anyone further than a supervisor when I ask to elevate the issue. I'm also filing with the State 's  Attorney General for my protection.

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