Consumer complaint received 2023-07-24
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Freedom Mortgage Company (CO)

XX/XX/2023 Consumer Financial Protection Bureau Subject : Complaint against Freedom Mortgage - Refund of Application Fee I am writing to file a formal complaint against Freedom Mortgage regarding a mortgage refinance loan application I initiated with them. As an XXXX customer who has been with Freedom Mortgage for over 14 years, I am deeply disappointed and concerned about the treatment I received during this process. I believe I may have been subjected to unfair and deceptive practices, possibly due to my age and relative lack of knowledge in mortgage refinancing. 

In early XXXX, I decided to explore refinancing options to take advantage of the lower interest rates prevailing in the market. After careful consideration, I chose Freedom Mortgage and paid an application fee of {$240.00} to process the loan application. However, to my dismay, the situation took an unexpected turn when Freedom Mortgage modified the original estimate they provided. 

The changes made by Freedom Mortgage included a higher interest rate, increased monthly payment, and higher closing costs compared to their initial estimate. This alteration effectively increased the overall cost of the loan, making it less favorable for me as a borrower. Under such circumstances, I was left with no choice but to withdraw my application in order to protect my financial interests. 

Following my withdrawal, I reached out to Freedom Mortgage to request a refund of the application fee, considering the significant changes they had made to the original terms. Unfortunately, I was met with a refusal to refund the fee, citing company policy and 'industry standard ' as the reasons for their decision. This response not only left me financially burdened but also left me feeling disregarded and undervalued as a loyal customer of many years. 

In contrast, during the same time frame, I had initiated a similar application with XXXX XXXX. However, when faced with a similar situation of changing terms, XXXX XXXX  promptly and responsibly refunded their application fee of {$500.00}. This demonstrates that it is indeed possible to treat customers with respect and fairness, especially when circumstances warrant such actions. 

Given the circumstances, I feel compelled to believe that I might be the victim of a deceptive bait-and-switch tactic or even predatory lending practices. While I acknowledge that Freedom Mortgage would deny such accusations, the evidence is difficult to ignore. As an elderly individual, I trust that my financial institution would treat me with fairness, honesty, and transparency. 

I am requesting the Consumer Financial Protection Bureau 's intervention to ensure that Freedom Mortgage addresses this matter appropriately, and fairly. My desired resolution is straightforward and just - I request Freedom Mortgage to follow the lead of XXXX XXXX  and refund the application fee of {$240.00} that I paid. This action would serve as a show of good faith, and a demonstration of fair treatment of an elderly and loyal customer. 

I appreciate the Consumer Financial Protection Bureau 's commitment to protecting elderly consumers from unfair practices, and ensuring financial institutions adhere to the highest standards of fair and ethical conduct. Your assistance in resolving this matter would be deeply appreciated. 

Thank you for your attention to this complaint. I am attaching copies of relevant documents, including the original estimate provided by Freedom Mortgage and evidence of payment of the application fee, for your reference. Please feel free to contact me if any additional information is required. 

Respectfully submitted,