Consumer complaint received 2024-04-28
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Freedom Mortgage Company (FL)

Freedom Mortgage Company is engaged in repeatedly and deliberately undermining the Mortgage Assumption Process to prevent any VA loan or service members from being able to realistically assume a mortgage. Their Assumptions Department is grossly negligent and is almost certainly engaged in Program Fraud with Civil Liabilities in violation of 31 U.S.C. 3801-3812. I recommend investigation from the VA Inspector General Office, additional audits of the company 's mortgage assumption processes, and the VA move to temporarily stop guaranteeing VA loans through Freedom Mortgage Company ( Pursuant with Circular 26-23-27 from the Veterans Affairs Office ). This complaint centers around the intentional delay and crafted business processes within Freedom Mortgage Corporation to delay review, approval, underwriting, and closure of VA Loan Assumptions within a reasonable timeline for any veterans or service members to be able to take advantage of a critical right and benefit of VA Home Loans : VA Loan Assumption. Reviewing the CFPB database, over the last XXXX years alone ( since leveraging assumable mortgages became popular ), Freedom Mortgage has XXXX direct complaints of the EXACT same nature with XXXX other related complaints. There are surely many more undocumented. 

On XX/XX/year>, the sellers ( and current mortgage holders ) sent a completed 3rd Party Authorization letter to Freedom Mortgage. That letter was received by Freedom Mortgage and Acknowledged as received on XXXX XX/XX/year>. I called Freedom on XXXX XX/XX/year> and was told that while they could see the 3rd Party Authorization Letter was received, they could not help me because it was not updated " in the system ''. I had to wait another week to start the application process. On XXXX XXXX, I was able to schedule an initial interview with a Loan Officer scheduled for XXXX XX/XX/year> with XXXX ID XXXX. On XXXX XX/XX/year>, Freedom Mortgage Company conducted a " Full/Hard '' Credit Score Inquiry and requested initial financial/personal information. At that time, the 45 day window to complete the application should have started because Freedom Mortgage had all of the information the VA requires to approve a loan assumption in accordance with the VA Circular 26-23-10 ( attached ). Therefore, the application should have been considered " complete '' and Freedom has 45 days to approve it ( meaning application should have been approved NLT XXXX XX/XX/year> ). Freedom Mortgage send a follow-up packet requesting more documents/documentation on XXXX XX/XX/year> and gave a 10-day suspense to complete the document submission before " cancelling the application ''. We submitted all documents requested on XXXX XX/XX/year>. On XXXX XXXX, a loan processor was assigned to our loan and requested ADDITIONAL information from us that could have been requested originally as it was not a follow on to original documentation. That was the first of many future examples of Freedom Mortgage Company using a delay tactic of waiting a week or so, then asking for another document, then waiting more and asking for another document. Keep in mind that these documents were not related or based off of " learning more info '' based on previous documents provided- they were clearly planned out to delay the process. 

After submitting each document requested within the same or next business day, our final document push for title company information ( which we provided on XXXX XX/XX/year> but was requested again on XXXX XXXX ) occurred on XXXX XXXX and we heard nothing from our loan processor - assuming our application was pushed to underwriting. We called and emailed almost daily ( see phone logs attached ) and did not get any call backs for a month. I sent an email to the loan processor on XXXX XXXX with that month 's bank statements just in case the underwriters needed them ( to be transparent and not give Freedom Mortgage Company an excuse to ask for more documents ). On XXXX XXXX, I called the Loan Processor, and for the first time since XXXX XXXX, I was able to reach her on the phone. At that time, she told me that she had not submitted the application to underwriting because there was an " alert on my credit '' and she " was not sure if we wanted to go through with the application anymore ''. I checked my credit score and XXXX  credit report and the last credit inquiry was XXXX XXXX from Freedom Mortgage and i did not have a single credit report concern since that time. She asked me to sign another document saying i wanted to continue the application. At this point, we are 30 days past what the VA circular 45-Day process defines and I have met all approval criteria. However, Freedom Mortgage Company continues to stall and use deliberate delay tactics to prevent this application from being approved, sent to underwriting, and ready for close. Right now, I am at extreme risk of not being able to purchase my home because of these fraudulent delay tactics and USC violations. 

After researching, this is not an isolated incident. There are XXXX other documented incidents exactly matching my complaint in the last XXXX years and XXXX similar incidents against Freedom Mortgage alone. The average closing time on a home is 43 days according to Veteran 's United. Freedom Mortgage has deliberately designed a process that makes it IMPOSSIBLE for a service member to receive this critical benefit within that time or even DOUBLE that time. Freedom Mortgage 's business model is reliant on VA loans and they would likely not be financially viable without these loans. Their CEO XXXX XXXX, within the first XXXX paragraphs of their Bio on LINKED IN, states the importance and value he places on veterans having " easy access to purchasing a home ''. This company is clearly in violation of XXXXXXXX XXXX vision as well as violation of Veteran 's Affairs Spirit of the Circular and Letter of the VA assumption circular. I recommend including the VA Inspector General in this complaint, auditing the company 's assumption processes, combining this complaint with the other XXXX complaints on the CFPB database, and leveraging the repeat offenses to remove VA guarantee of loans with Freedom Mortgage Corporation. Finally, they should approve my application immediately, finish underwriting within XXXX business days from XXXX XX/XX/year>, and facilitate a close on this mortgage NO LATER THAN XXXX XX/XX/year>.