Consumer complaint received 2023-09-20
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Freedom Mortgage Company (VA)

My husband and I put in and offer foXXXX XXXX XXXX XXXX XXXX XXXX on XX/XX/2023 and it got accepted. The offer consisted of an Assumed VA Loan at 2.25 % for about XXXX XXXX. We called Freedom Mortgage to figure out a close date and were told mortgage assumptions took an average of 45-60 days, so we put XX/XX/2023 as the estimated close date on our offer. 

We had to wait until XX/XX/2023 to receive a simple form ( Mortgage Assumption Request Form ) to fill out. We filled out the same day and returned. We called Freedom Mortgage a week later because we hadn't heard anything... was informed that paperwork was illegible, submitted new paperwork. 

On XX/XX/2023, we finally were able to talk to someone at Freedom Mortgage. We spoke with the mortgage loan officer by the name of XXXX XXXX. It was an hour-long intake call. The next step was to receive the loan application packet in the mail in a week. We completed the application and attached various printouts and sent back certified mail on XX/XX/2023. We were informed that once they received the packet, then a XXXX clock before the Loan Assumption would be approved. 

Now that the expected completion date was pushed back to XX/XX/2023, we worked out a deal with the seller to move in on XX/XX/2023 and rent the condo until we closed. Our rent ( occupancy charge ) would cover the seller 's carrying costs for the mortgage and condo fees. 

We got word on XX/XX/2023 from XXXX XXXX, the processor, that more information was needed ( Letter attached ). We responded quickly and got an email from XXXX on XX/XX/2023 that said We should hear back from the Underwriter in 3 weeks. 

On XX/XX/2023 we finally got a response from Freedom Mortgage ( after many calls asking for a response ) that more information as needed ( Letter attached ). We responded quickly on XX/XX/2023 with 90 % of the information and waited until we returned home from vacation with the final documents on XX/XX/2023. 

Until this point, the process seemed slow, but relatively normal. We had some concerns that many of the questions didnt seem relevant to our ability to pay off the loan. For example, why a marriage license? In addition, several questions related XXXX XXXX changing her name to XXXX XXXX even though she didnt change her name and we never indicated that she would change her name. This felt like they were searching for delays. 

Finally ( so far ), we got another request for information on XX/XX/2023 ( Letter attached ). This is when alarm bells really went off. Many of these requests had already been answered and several seemed totally unrelated to our ability to pay off the loan. Our monthly incomes far exceed the amount of the monthly loan. In fact, XXXX had received a loan 2 years earlier for her previous condo for a similar amount and was approved without trouble. Now with XXXX as a co-lender, her financial situation was even better since he made more money than her and the assumable loan was a lower interest rate. 

For example, one question was : XXXX to provide a more detailed explanation as to why XXXX XXXX XXXX residence is being retained as a second home when the house is 20 miles from subject and not located in an area typical of tourism or vacation home. What is the long term intention for this property?. This property is worth XXXX XXXXXXXX and has a current mortgage of XXXX XXXX ( with Freedom Mortgage! ). What is the concern? 

At this point we felt like Freedom Mortgages actions were unfair and abusive. Freedom is slow-walking the assumption, apparently with the hope that either the seller or us will walk away from the transaction and they can lend at a higher rate. 

In addition, we are losing XXXX of XXXX of dollars in potential interest sitting in a checking account rather than higher yielding investments as this has dragged out for 4 months.