Consumer complaint received 2017-04-05
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Freedom Mortgage Company (MN)

Freedom Mortgage was escrowing our taxes and homeowners insurance, but failed to pay our county taxes when due. After receiving a late notice from the county, I called into Freedom and they suggested they were unsure if they were to pay them or not. I called my title company and they recommended I pay the taxes to the county directly, and then work back through Freedom in order to settle this ... but to at least ensure the taxes were paid. I did that - I paid XXXX {$490.00} for our taxes due. I then received a year-end statement from Freedom Mortgage which stated {$490.00} had been paid to XXXX for taxes due. After a series of calls to the County & Freedom mortgage ( XXXX of which included " conferencing '' in both parties to discuss this issue ), XXXX indicated they had sent the funds back to Freedom Mortgage, as the taxes were satisfied, so the " overpayment '' of taxes due was generated back to Freedom. Freedom took 6 weeks to confirm that they did receive the funds back, and it was applied and sitting in escrow. After calling in 3 times to request the funds be returned back to me - I was told a variety of different messages. I was initially told the funds would automatically be sent back to me, but when I had n't received them after 2-3 weeks, I called again. I was told that I could deduct the {$490.00} from my upcoming monthly payment and Freedom would transfer the overage sitting in escrow back to be applied to my monthly payment. I did that on my XXXX payment, and verified that with a supervisor in the servicing department on XXXX/XXXX/17 ( Freedom has record of this call and the conversation ). For my XXXX payment, I paid my mortgage less {$490.00}. I immediately started receiving collection calls, suggesting I had not sent in my full payment. I explained the history and what I had been told, and I was then told no funds could be moved at all until an escrow analysis was done ( basically, all information provided to me previously from Freedom was incorrect ). From there, they stated I needed to make the additional {$490.00} payment or I would receive a late fee. I disputed that and they eventually agreed, as well as recommended an escrow analysis. After 3 more calls, I was told escrow would not release the funds to me as my escrow balance was insufficient. With my annual escrow account statement disclosure statement in front of me, I communicated that the Federal Law states that the lowest monthly balance in the upcoming 12 months should not exceed XXXX, which is 1/6th of the total anticipated annual disbursements from the account, unless my mortgage contract or state law specifies a lower amount. The actual lowest monthly balance on my account was XXXX, which is a XXXX difference. I communicated I would pay the XXXX difference and then have the escrow analysis re-performed, in order for my {$490.00} to be paid back. Freedom is now suggesting I do need to pay the late fee on my account, as well as the {$490.00}. I am agreeing to pay the {$490.00} but not the late fee. This is a servicing issue - and Freedom Mortgage can not seem to communicate consistenly or clearly, nor can they figure out how to appropriately service this situation ... leaving undue frustration, cost, and burden on me as the borrower. I would like a complaint to be opened to investigate the situation and ultimately help me receive the {$490.00} back, as well as waive the late fee applied to my account.