Consumer complaint received 2023-12-14
Company: Freedom Mortgage Company
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage
Sub-issue: Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure

Complaint:
After spending hours on the phone with the VA XXXX, HUD, and XXXX XXXX XXXX, who services the promissory note. XXXX XXXX XXXX advised they are reaching out to VA to obtain Modification and Promissory Note details, which should occur within 24 hours. At that point, she can provide a payoff and wire information, cost of reconveyance, and lien release, etc. 

XXXX XXXX XXXX XXXX  handles all VA loan modification payoffs for subordinate loans, and they personally stated that this can be paid off at any time without prepayment penalties, or any restrictions relating to my primary mortgage. 

They will contact me today personally via phone, once they have received all modification documents, to be able to provide a payoff to you. 

Freedom Mortgage misinformed me and has been careless with this modification. The Cares Act, clearly details the rules surrounding the forbearance and modifications of VA loans, specifically reads that we should be allowed to pay towards or in full the subordinate lien amount without issue at any time throughout the duration of the loan, not to exceed XXXX XXXX 

I just received further follow up from VA Customer Service Rep., as they reached out to their supervisor for further support because my account did not look correct. From what the VA found in their system, Freedom Mortgage completed the Modification, and uploaded the pertinent documents related to the modification and promissory note, although they never finished the filing of the claim with the VA and the VA has never paid out on the claim. So according to the VA, they don't have a claim with any monies owing for the subordinate loan and are unclear as to why there is a 2nd lien recording showing the VA as the Lender for it. 

So, at this point, the VA has the loan modification and promissory note uploaded to start the claim, although Freedom Mortgage never completed the claim and the VA never paid out to Freedom Mortgage on the claim. 

When I viewed the recent title report for my property, it shows there was a lien recorded on XX/XX/, showing the Lender as Secretary of Veterans Affairs. The VA said this was not recorded by them and they have no record of it. 

In speaking with Queen in Loan Modifications at Freedom Mortgage, when explaining that the VA can see that Freedom Mortgage started the Partial Claim Loan XXXX XXXX, uploaded the executed modification documents, but they never completed the process by filing the claim and being paid out on the claim. She advised that there was an issue with recording and Freedom Mortgage decided to hold the loan " in house ''. She further stated that this is an internal loan being carried by Freedom Mortgage so the VA would not have anything to do with it. She also stated that the payment of the lien would be directly to Freedom Mortgage. I then requested to speak with her supervisor. 

Spoke with XXXX XXXX XXXX XXXX XXXX, who advised that she has to speak with Loan Mitigation and Underwriters regarding the servicing of this loan. They stated there was an issue at recording of the Loan Modification and now Freedom Mortgage holds the modification loan in house. I explained that I was never informed there was an issue regarding the recording of the document and I am unsure as to why I would pay off the subordinate loan to Freedom Mortgage when it clearly states in my signed, recorded promissory note that I am to make the payment to XXXX XXXX. The supervisor stated that the VA is not involved in the partial claim and I advised that is incorrect. 
According to my signed legal document recorded on my property there is VA partial loan information, case numbers, etc. 

The Freedom Mortgage supervisor said she will have an answer for me by Friday with who I should make the payment to because of the issues on my loan modification. 

I will be reaching out to the VA again to review this issue with them, now that I have viewed the Title report for my house, which shows a 2nd lien being recorded by the VA, and the modification loan agreement I signed as of XXXX still is not showing on title for my property.

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