Consumer complaint received 2024-08-15
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: Freedom Mortgage Company (MD)

In XX/XX/year>, I mailed a letter and a check for {$190.00} to Freedom Mortgage ( per their instructions ) and requested PMI cancellation based on the current value of my property, and the {$190.00} required fee cleared my bank on XX/XX/year>. On XX/XX/XXXX, XXXX XXXX, with XXXX XXXX XXXX XXXX XXXX XXXX XXXX, arrived at my home at approximately XXXX XXXX. XXXX and took photos of all rooms, closets, the basement, the back yard, the front yard, and the driveway. He stated that he had XXXX or XXXX other assessments that day in addition to mine. While he was at my house, I pointed out the home right across the street at XXXX XXXX XXXX XXXX that had just sold for {$410.00} per sq ft, and he advised that he would include all current comps in his assessment. 

I received his XXXX report on XX/XX/year>, with a ridiculously low estimate of {$460000.00} or {$360.00} per sq ft. Furthermore, XXXX XXXX had not included the most recent comp directly across the street from mine. As I read XXXX XXXX XXXX report, several items stood out : Number of comparable properties in the subject propertys neighborhood currently on the market/price range : XXXX $ XXXX {$600000.00} ; Number of comparable properties in the subject propertys neighborhood during the past XXXX mo/price range : XXXX {$400000.00} - {$600000.00} ; * The local real estate market has leveled of from a sellers market due to increasing mortgage interest to a market more equally balanced between buyers and sellers and is fair market resale driven with some higher priced new homes, XXXX/foreclosures and rentals mixed in. 

Lets address his last comment first. It is hard to comprehend that the local real estate market has leveled off when the most recent comp the house directly across the street from mine - sold on XX/XX/XXXX for {$410.00} per sq ft and whose sale was finalized on XX/XX/XXXX for {$400.00} per sq ft. If the local market has leveled off, how is it that this house ( XXXX XXXX XXXX XXXX ) JUST sold for {$400.00} per sq ft but the comp he included at XXXXXXXX XXXX XXXX XXXXXXXX sold in XXXX for {$320.00} per sq ft? According to his logic, shouldnt the house at XXXX XXXX XXXX XXXX have sold for less than {$320.00} per sq ft? 

Next, XXXX XXXX notes a {$200000.00} range in comparable properties to mine. While he did not, for some strange reason, include the most recent comp at XXXX XXXX XXXX XXXX in his assessment, he did include XXXX homes that sold in XXXX, XXXX, and XXXX at {$440.00}, {$320.00}, and {$440.00} per sq ft, respectively. As none of the comps are exactly the same as mine in terms of bedrooms, bathrooms, and square footage, I am again perplexed at how XXXX XXXX failed to include the most recent comp directly across the street from mine. Because the sale had not been finalized is no excuse. XXXX phone call would have confirmed the information he needed to include that home as a comp. 

That being said, and according to XXXX XXXX XXXX own statement that there is a {$200000.00} range in comps in my neighborhood, the most logical method to determine the current value of my home is to take the median value of the XXXX comps he chose in his assessment, which would give us a value of {$400.00} per sq ft, and, actually, is exactly in line with what the comp directly across the street from mine just sold for! And that would make the current market value of my home {$520000.00} as of XX/XX/year>. 

How XXXX XXXX came up with a value of {$460000.00} is baffling and I can only conclude that he drastically undervalued my home in order to satisfy Freedom Mortgage. There is no other logical conclusion. 

In addition, I received a letter dated XX/XX/year>, from Freedom Mortgage stating " Your property valuation shows a decline in property value below the original value. '' That is a blatantly false statement, even according to XXXX XXXX 's low-ball appraisal of my property, which further leads me to believe that Freedom Mortgage XXXX XXXX fraud by charging fees for a bogus appraisal and prompt denial of PMI cancellation. The letter also states that I need to include evidence of major improvements for consideration of PMI request. And, again, had they read the report they would have seen the list of major improvements.