Consumer complaint received 2024-07-20
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company (FL)

Freedom Mortgage, my lender is attempting to force me into purchasing flood insurance prior to the new FEMA flood zone map being made public. It is appalling that Freedom Mortgage is attempting to overcharge for force-placed insurance or even force-placed insurance at a pro-rate. Not only is it bad business, but the intimidation and scare tactics are illegal. 

I received contact from Freedom Mortgage telling me that I am required to purchase a flood zone policy prior to XX/XX/XXXX or else. The email from Freedom Mortgage threatened, Failure to provide sufficient coverage will result in us ordering it at your expense, which may cost more than a policy you can obtain on your own. 

Since the new flood zone map is not scheduled to be made public until XX/XX/XXXX, the business practice of forcing a loan holder to purchase flood insurance when they are not required to do so is illegal. 

Furthermore, my insurance company informed me of the following information : 1. According to the current Flood Zone Determination Map ( XXXX XXXX XXXX ), I am currently in Flood Zone X. The areas of minimal flood hazard, which are the areas outside the XXXX and higher than the elevation of the XXXX flood, are labeled Zone C or Zone X, ( https : //www.fema.gov/glossary/flood-zones ).

2. A flood insurance policy can not be written or accepted if I am in Flood Zone X, and unless the new flood zone map is made public and shows that I am no longer in Flood Zone X I can not get a flood policy from my insurance. 

XXXX. If in fact I am remapped into a Special Flood Hazard Area ( XXXX XXXX XXXX ) and if am also no longer in Flood Zone X , then I have a 30 day waiting period to add a flood insurance policy.

4. It is illegal for Freedom Mortgage to try to force me to purchase flood insurance prior to the map being made public
by FEMA. 

XXXX. My insurance, XXXX XXXX XXXX, has me in a XXXX XXXX XXXX. The Citizens requirement of flood insurance is happening in phases, even if I am remapped into a Special Flood Hazard Area : New Personal Lines residential policyholders seeking Citizens coverage, including coverage for the peril of wind, in areas designated by the Federal Emergency Management Agency ( FEMA ) as a Special Flood Hazard Area are required as of XX/XX/XXXX, to have flood insurance coverage to be eligible for a XXXX policy. XXXX XXXX policyholders in designated FEMA flood hazard areas whose policy includes wind coverage will be required to have flood insurance to renew their XXXX policies on or after XX/XX/XXXX. 
For all other XXXX XXXX XXXX residential policies that include wind coverage, the flood insurance requirement will be phased in for new and renewing policyholders over the next XXXX years as follows : XX/XX/XXXX, for policies insuring property valued at {$600000.00} or more XX/XX/XXXX, for policies insuring property valued at {$500000.00} or more XX/XX/XXXX, for policies insuring property valued at {$400000.00} or more XX/XX/XXXX, for all other policies ( https : //www.citizensfla.com/-/flood-insurance-coverage-rules-kick-in-for-citizens ) I called the Freedom Mortgage XXXX Department XXXX XXXX XX/XX/XXXX requesting clarification and a copy of the Flood Zone Determination Map used by Freedom Mortgage, so that I may pass it along to my insurance company. A supervisor, told me that Freedom Mortgage uses XXXX maps. Exactly to my point, that the new map is not scheduled to be made public until XX/XX/XXXX and that forcing loan-holders to purchase flood insurance who are not in a flood zone, or to do so prematurely is illegal. 

When I requested information on how I could submit a complaint, the supervisor said he is doing it for me and that is why Im talking to him. I asked for a copy of my complaint that he is writing be sent to me and was told, we dont do that and thats why you are talking to me. So, I am supposed to trust that he is typing up how and why I am formally complaining, but XXXX not going to receive a copy of it? 

Finally, I have been advised to file complaints with the state and national XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX  XXXX XXXX, and XXXX XXXX. As not only a loan-holder, but also a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I am really disappointed that Freedom Mortgage would attempt to strong-arm their already struggling customers this way. 

Moreover, the business practice of forcing loan holders to get insurance when they are not listed in a flood zone is illegal.