Consumer complaint received 2024-05-12
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company (HI)

Introduction : \n This statement presents a detailed timeline and explanation of events concerning Freedom Mortgages acquisition of unnecessary hurricane/wind insurance for my property. The XXXX XXXX XXXX XXXX XXXX master policy comprehensively covers both the interior and exterior of the condominium against hurricane/wind damage, rendering separate personal coverage for this risk redundant. Despite clear coverage by the XXXX policy, Freedom Mortgage has frequently changed courseeight times to dateleading to significant confusion. Initially, they insisted on adding " Betterments and Improvements '' to my commercial condo policy, a modification not permitted by the XXXX. Most recently, they have shifted focus, now demanding that my policy specify coverage for hail storms in Hawaii, further complicating matters. These inconsistent and unnecessary requirements have not only been financially burdensome but have also negatively affected my credit score. 

Timeline : XX/XX/XXXX Purchased home I purchased a condo unit that is part of a commercial zone managed by a XXXX XXXX XXXX XXXX XXXX  ). The commercial zoning requires a commercial policy in which is under XXXX XXXX XXXX NAIC XXXX. 
The XXXX 's master insurance policy includes hurricane/wind insurance, covering both the interior and exterior of the condo as originally built. This eliminates the need for separate personal hurricane/wind insurance signed and approved by Freedom Mortgage XXXX Authorized Representative. 
My personal home insurance with XXXX excluded hurricane/wind insurance, as this coverage is already provided by the XXXX master policy XXXX. 
XX/XX/XXXX Switched personal home insurance from XXXX to XXXX XXXX. XXXX XXXX insurance does not cover hurricane/wind insurance as this coverage continues to be provided under the XXXX master policy. 
XX/XX/XXXX Freedom mortgage purchases separate hurricane/wind insurance on My behalf, XXXX XXXX XXXX XXXX despite that this is covered under the XXXX master policy. 
XX/XX/XXXX XXXX XXXX pays mortgage ( excluding hurricane/wind insurance purchased by Freedom Mortgage ) in advance from XXXX XXXX XXXX 
XX/XX/XXXX XXXX XXXX pays mortgage only ( not including hurricane/wind insurance purchased by Freedom Mortgage ) in advance for XXXX XXXX. 
XX/XX/XXXX Received a notification from Freedom Mortgage stating that I still owe for the month of XXXX despite my advance payments. 
XX/XX/XXXX called Freedom Mortgage more than 6 times wanting to speak to an individual as I thought there might have been some confusion. On hold for 2hrs while I was at work. Could not resolve issue due to work demands. 
XX/XX/XXXX - Since I was not able to make a payment with an individual due to long hold times during working hours, I registered my account for automatic payments. 
XX/XX/XXXX Received that my automatic payments registered online did not go through because of an error with their system. 
XX/XX/XXXX Immediately called Freedom Mortgage to make a payment and registered my account for ACH payments with an agent. 
XX/XX/XXXX XXXX XXXX receives letter from Freedom Mortgage stating that he is delinquent in mortgage payments, which significantly decreases his credit score by more than XXXX points causing unnecessary financial stress and worry. 
XX/XX/XXXX XXXX XXXX calls Freedom Mortgage to inquire why his account is delinquent thereby causing the significant decrease in his financial credit score. He is told that he is delinquent because he has not paid the unnecessary hurricane/wind coverage purchased by Freedom Mortgage on his behalf and without his consent. 
XX/XX/XXXX Freedom Mortgage notified XXXX XXXX of increase in Property Insurance and said that Wind insurance is excluded on my XXXX policy XX/XX/XXXX - called XXXX to reach out to freedom mortgage in which they did XX/XX/XXXX XXXX informed me that all insurance issue are resolved XX/XX/XXXX Freedom mortgage informed me that the insurance was not resolved and that the difference in the price is not having coverage for two months XX/XX/XXXX called freedom mortgage with my verified coverage XX/XX/XXXX called freedom mortgage and they stated that the difference in insurance is my hurricane insurance and not wind insurance XX/XX/XXXX called freedom mortgage and they stated that my policy needs to be updated with betterments and improvements XX/XX/XXXX Called freedom mortgage to verify if my ACH payments went through and they stated that it didnt and could not accept any payment until the insurance is paid. She stated to me that I am covered up to XXXX XXXX in property damage and was confused of the insurance. 
XXXX XX/XX/XXXX XXXX XXXX calls and speaks with XXXX from Freedom Mortgage to discuss the disconnect between the Freedom Mortgage and his insurance policies ( personal ( XXXX ), and the XXXX XXXX XXXX ) ). The customer representative explains to XXXX XXXX that his currently insurance policy with XXXX does not include hurricane/wind insurance, and clearly does not understand that the hurricane/wind insurance is covered by the XXXX master policy and not XXXX XXXX personal insurance with XXXX. XXXX XXXX requests Freedom Mortgages policy regarding hurricane/wind insurance, which he does not receive from the representative. 
XX/XX/XXXX requested a face to face with XXXX as they explained to me, I am fully covered and does not know of any more coverage that they could offer other than purchasing unnecessary insurance to satisfy freedom mortgage. 
XX/XX/XXXX called freedom mortgage and they stated that hurricane and wind are the same under the State of Hawaii. I asked representative to notate in account of such information. 
XX/XX/XXXX called freedom mortgage and they stated that I need betterments and improvements added to my policy. I asked why since my house has no betterments and improvements and could they give me some sort of written documentation stating that its a requirement. XXXX, Freedom Mortgage representative, stated its Federal Law states that. I asked for the Federal law that state that and she remained silent. I asked if she is able to give me documentation that state what she said. Still remained silent, I asked who is contracting you to say things without any written declaration. She remained silent. 

Conclusion : Freedom Mortgage has failed to understand that I have had consistent hurricane/wind coverage under my XXXX master policy since purchasing the home in XXXX. Without cause or reason, Freedom Mortgage purchased separate hurricane/wind insurance, causing me unnecessary financial stress and XXXX and has negatively and gravely affected my perfect credit score. I am seeking resolution in the form of financial recompense for the period from XX/XX/XXXX to XX/XX/XXXX and restoration of my credit score to its status prior to XX/XX/XXXX.