Consumer complaint received 2018-04-19
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company (MA)

When I received my loan documents, I was told that PMI would be removed when the loan had been repaid on time for 5 years and loan to value was 78 % to the homes value or the initial loan value. The loan started in XX/XX/XXXX.

My servicer in XX/XX/XXXX was XXXX. I was working with them in XX/XX/XXXX to remove the PMI. The original value of the loan was XXXX, the home was appraised at XXXX. We have invested in our home and strongly believed the market value was significantly higher.

I contacted XXXX  to discus removing PMI and they informed me that my loan would move to Freedom. I contacted Freedom and explained my home 's value had increased and that I would like to have the appraisal done so I could drop PMI.

Freedom said they could not help me until they had the note in their file.

After some time, they were able to discuss with me my account. After multiple calls, I finally had someone tell me how to get an appraisal done on my property to remove PMI. They were very clear on their instructions.

I trusted that because my call was recorded, that I didn't need to write down more then these steps. I was to call XXXX, provide reference code XXXX  and my loan number XXXX. Once the appraisal was complete, Freedom would receive this information, they would be able to adjust the value and fix the PMI.

I followed their instructions. Called the number. Paid {$450.00} via a credit card on XX/XX/XXXX to a group called XXXX XXXX XXXX. The next day a certified appraiser called me and on XX/XX/XXXX I had them in my home, documenting my property. I had to stay home from work to make this happen. The value of the removal of PMI is a significant cost savings for my family of XXXX. Kids are expensive and I was excited for this opportunity.

Today, XX/XX/XXXX, I contacted Freedom to understand the status. The first person I spoke with said what I did was not possible and transferred me to a manager. The manager said what I did was wrong and that he needed to pull the audio recordings to verify what I was told was what I was told. He would then call be back for next steps. I was devastated at this news and told my wife.

I called in the evening to find out the status and again was told this was not possible. For the first time a rep explained why. They stated that FHA property values could not be changed.

I have a hard time accepting this because it doesn't say that in the loan documents. It says initial loan value or home value. My home value is not documented correctly and I am seeking to correct that. The rep explained that there was nothing she could do. That I was given incorrect information.

I spoke with XXXX, a manager on the evening call. She offered to send me the very agreement I referenced that states either original loan or home value. She clearly explained their only remedy is to pay me for the expense of the appraisal or they can put me in a new loan. The first option requires me to prove they said what they said to me and to provide receipts for my transaction. The second they make more money off of me through closing costs and so forth. I broke the news to my wife. This represents a significant change in our XX/XX/XXXX budget and strategy. While we are thankful for the clarity, we don't understand why were instructed down this path without hope of Freedom Mortgage keeping integrity.

There has to be a way for them to keep their word to me. I did what they told me to do and took the time to do it.

I trusted them, please advise.