Consumer complaint received 2024-08-06
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Freedom Mortgage Company (CA)

On XX/XX/year> there was sever rain in XXXX XXXX XXXX, resulting in flooding and water damage and as a result, XXXX XXXX XXXX, CA was declared a XXXX disaster area to include my home address. 

I received a letter from Freedom Mortgage in XXXXXXXX XXXX concerning my mortgage saying that I was automatically going to put my mortgage into forbearance and in order to avoid this, I'd have to call to opt out of forbearance. I did not request this. Freedom Mortgage put me in forbearance and I had to call to turn it down. 

I called Freedom Mortgage on a recorded line on XX/XX/year> saying I was not interested in a 90 day delay in payment. That would not help me. The representative asked if my home was damaged during the rains in XXXX. I said it was. He assured me that the forbearance was for this purpose and that the XXXX payments would not be due at the end of the 90 day forbearance period and that my credit would not be affected because this was a special disaster forbearance. He assured me that the payments would be placed at the end of my loan and all I'd have to do is start paying my normal payments at the end of the 90 days. My forbearance period was for XXXX, XXXX and XXXX of 2024. I already paid XXXX. He said that they would only allow the suspended payment period until XX/XX/XXXX, so it was actually for the XXXX remaining payments. 

On the XX/XX/XXXX call, I asked him to send me an email for proof that the payments would not be immediately due and that, as he said, they would be placed at the end of the loan payments. He did email and mail a letter but, it didn't specifically say that the payments would be shifted. It was an option. I assumed that I would be able to choose this option. 

XXXX and XXXX 's statements said my payments were late. I called early XXXX to verify I was not obligated. The representative assured me we were not and that the statements were computer generated and automatic but, that I was in good standing with Freedom Mortgage because I was in a disaster forbearance. 

I called again XX/XX/XXXX to inquire about verification of my payments being moved to the end of the loan. Freedom Mortgage promptly told me that the XXXX, XXXX and XXXX payments were due XX/XX/XXXX and that I'd have to apply for a hardship program to get the payments deferred. I applied online that same day. Upon completion of the application I was informed that Freedom Mortgage had up to 30 days to XXXX my request. If they took the full 30 days that would put my payments delinquent. 

I called again XX/XX/year> and escalated the call to a loan service manage. He told me that regardless of the underwriters decision, because I haven't paid my XXXX and XXXX payments, I'll be reported as 60 days late for those payments to all credit boroughs for all on the loan. That includes my wife and my mother. I explained that i was assured the payments would be placed at the end of the loan and that my credit would not be affected because it was a disaster forbearance. I told him I was promised and that it was recorded and could he review what I was told. 

The manager told me that he would review the call and possibly go through corrective measures for the rep I spoke to but, that was it. There was nothing more he could do. I asked if he could delay the credit reporting until my application was approved. He said it was computer generated and he could not. I asked if I could pay XXXX 's payment so it wasn't late while the determined XXXX and XXXX 's fate. He said he could not. 

On XX/XX/XXXX, I sent a cashiers check via certified priority mail specifically for XXXX 's payment. XXXX payment and loan number were in the memo of the check. It took 8 days for the letter to be received and another 5 days for the check to be deposited and an additional XXXX for it to be posted. It was posted to XXXX 's payment. Now XXXX 's was past due. My credit was not yet affected. I called again. 

The call at the end of XXXX resulted in Freedom Mortgage telling me they have yet to make a decision. Logging on to the Freedom Mortgage showed me that my account had been put into a non-disaster forbearance starting XX/XX/XXXX through XXXX. I was informed that a regular forbearance does not protect your credit. 

With my family 's credit at risk, we chose to use the funds set aside for repairs to the house to pay all XXXX payments due for our mortgage on XX/XX/XXXX. We are current and have always maintained timely payments. 

On XX/XX/XXXX, Freedom Mortgage reported to all credit boroughs a 60 day late payment notice for all on the loan. This dropped our credit scores over XXXX points to the low XXXX 's. 

This effectively traps us into staying with Freedom Mortgage because the have crippled our credit through an automatic forbearance program we knew nothing about. When we asked about it, we were given incorrect information and false reassurance that we weren't late nor would our credit score be affected. 

We still haven't repaired the damages of XX/XX/XXXX. 

Because we are current with payments, Freedom Mortgage no longer wants to help. 

We are asking that Freedom Mortgage re-instate our good credit by sending correction letters to all credit boroughs. We've already disputed the late notice with the credit boroughs but, Freedom Mortgage will not corroborate the mistake. We asked for a letter from them. We received only that we a current on our mortgage. 

We need corrective action from the CFPB to help us save our credit and afford us the opportunity to move to a more ethical and honest mortgage company.