Consumer complaint received 2022-05-24
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Freedom Mortgage Company (CO)

Below is a copy of a letter that has all of the details of my situation : XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX RE : Complaint - Freedom Mortgage, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, NJ XXXX And Confusion on 1st Quarter Property Tax Payment To Whom It May Concern : I have an FHA loan/mortgage with Freedom Mortgage XXXX ( Loan # : XXXX ). As long as I have had this loan, I have made my payments on time through autopay. This was until Covid hit, then, I had to put my loan into forbearance. 

After my forbearance expired Freedom Mortgage sent me loan modification paperwork with a lower payment and, because of the time I received the modification I also received a lower interest rate. All of these things were expected and after a few phone calls with Freedom Mortgage I finally convinced them that they could come down on the payment and the interest rate with all the new moratoriums put in place by President Biden for homeowners coming out of forbearance. Freedom Mortgage continually fought me about better ways to remodify my loan but, I finally attained a better modification on my mortgage. I wanted to bring this to your attention only to preface my current problem with Freedom Mortgage not listening to me or attempting to work with me when I ask them for something they need to correct. 

For this year, XXXX, I decided to pay my own homeowners insurance and my own property taxes. I wanted to avoid having an escrow account due to the fact that since my mortgage has been with Freedom Mortgage the monthly payment went up several times throughout the years. When I would call Freedom Mortgage to ask why they ( automatically ) raised my monthly payment they would inform me that my escrow account was short so they increased my monthly payment to cover my escrow account. That made sense ; however, why didnt I receive something in advance of Freedom Mortgage just increasing my rate telling me that I needed to add money to my escrow account so I had the choice of whether or not I wanted to fulfill the escrow account shortage by increasing my monthly payment amount or sending extra money to Freedom Mortgage to put into my escrow account? I found this practice to be egregious and incredibly frustrating. 

This is one of the problems I have had with Freedom Mortgage but, it is not what I am writing about specifically today. As I mentioned earlier in this letter, I have an FHA loan with Freedom Mortgage. I explained, as well, about not wanting to have an escrow account. I want to make it clear I do understand that there are instances when the escrow account will need to be replenished due to certain circumstances. My plan for that was, I was going to send Freedom Mortgage extra money, earmarked, for the escrow account throughout the year. I had a plan and a plan that I believed would work until I learned about the criteria for the FHA loan having to have an escrow account. 

My current problem is that Freedom Mortgage owes me {$2000.00}, and will not pay me. They owe me this amount because before Freedom Mortgage told me I had to have an escrow account I had already paid the 1st half of my property taxes which were, {$2000.00}. I paid them online to the XXXX XXXX in XXXX XXXX ( XXXX XXXX, Colorado ). After I learned that FHA wouldnt allow me to pay my own property taxes and homeowners insurance I went to XXXX XXXX XXXX XXXX and spoke with them about getting a refund for my property tax payment I had made for the 1st half of the year. The clerk I spoke with was confused as I told her what I needed because all the clerk saw in her information was that only one payment had been made toward my 1st quarter property taxes and it was the payment, I had made on XX/XX/XXXX. I asked the clerk whether or not Freedom Mortgage had made a payment for the 1st quarter taxes and she said no. This shocked me because I would have thought Freedom Mortgage would have already paid the 1st quarter property taxes being that I was told I couldnt pay them and the taxes were due on XX/XX/XXXX. I believed that Freedom Mortgage should have/would have had my 1st quarter property taxes paid because my loan modification paperwork reflected in the escrow account that the loan included the full amount due for both property taxes and my homeowners insurance premium. 

Once I learned that Freedom Mortgage had not made a property tax payment, I called Freedom Mortgage the same day and began my inquiry as to what was going on with my account. I found out that Freedom Mortgage had paid the 1st quarter property taxes in early XXXX, XXXX. I then found out from Freedom Mortgage that because the XXXX XXXX XXXX XXXX  had received two payments for the 1st quarter property taxes they had sent a refund check in the amount of {$2000.00}, back to Freedom Mortgage instead of refunding me. I can not even speak to why the XXXX XXXX XXXX XXXX  decided to refund the money in the manner that they did because it was easier for me to not even ask the clerk at the XXXX XXXX. I had a fairly good inkling all I would hear from the clerk was ; thats our policy. I certainly can not change county government policy so I didnt even pursue that idea. 

What I did do is ask Freedom Mortgage to please refund me my {$2000.00}, since they really HAD NOT paid my property taxes and that I had in fact paid the amount for the 1st quarter. I reminded Freedom Mortgage that they told me I COULD NOT pay my own property taxes or homeowners insurance due to the FHA loan requiring an escrow account. The agent at Freedom Mortgage agreed with all that I was saying. The agent was the one who informed me about how things had fallen into place and how my money was now at the XXXX XXXX  and not Freedom Mortgages, as they had been refunded {$2000.00}. 

The agent I spoke with, at Freedom Mortgage on XX/XX/XXXX, told me, after all the crazy nonsense I had to go through to get to this point that, a check was being cut on the XXXX to be sent to me. Because this conversation, with the Freedom Mortgage agent took place on the XXXX, of XX/XX/XXXX, I presumed the agent was confirming a check was being cut to reimburse me for the property tax amount on the XXXX, of XXXX, XXXX. 

The other issue I had thats connected to this debacle is I still need to sign and return all my loan modification paperwork and the due date for my paperwork was XX/XX/XXXX. I was having an issue with the fact that my loan modification still showed I owed the entire amount of escrow due for the year. If Freedom Mortgage did not reimburse me for the amount I paid to the XXXX XXXX XXXX XXXX then my loan modification paperwork was not correct and not only that, my monthly payment would have to come down to reflect the {$2000.00}, that would need to be deducted from the escrow account since I paid that portion of the property taxes and Freedom Mortgage has received their money back from the XXXX XXXX, Colorado, XXXX XXXX Another payment of {$2000.00}, will need to be made by XX/XX/XXXX, for property taxes ; however, that payment is incorporated in the mortgage via the escrow account in the loan modification paperwork. I do not see how I can sign the loan modification paperwork until I am clear as to why Freedom Mortgage will not reimburse me the funds that are owed to me. As of todays date, XX/XX/XXXX, Freedom Mortgage has not made any payment to the XXXX XXXX XXXX XXXX  for the first quarter property taxes due on my property. This would be a non-compliance issue with the Federal Housing Authority I presume as I have an FHA loan and Freedom Mortgage has not done as the FHA requires. 

As of XX/XX/XXXX, I have not been reimbursed for my payment of property taxes. I called Freedom Mortgage on Friday, XX/XX/XXXX. I first spoke to a female agent about when I may expect a check from Freedom Mortgage. It took the female a bit to get up to speed on all the conversations I have had with other agents since XX/XX/XXXX, when I discovered Freedom Mortgage received their money back in lieu of me paying my 1st quarter property taxes. As I was speaking with the female agent on Friday, XX/XX/XXXX, she had to put me on hold ( to search ), call someone to get more information from them about my account ( I have since discovered that when I speak to Freedom Mortgage, I am talking a person, likely working from their home and, the person I speak with always has to put me on extremely long holds while they attempt to call someone themselves to attain answers to THEIR questions ). This ridiculous customer service method left me on hold for approximately 30 minutes. When I realized how long I had been on hold it became apparent to me the female agent was not going to be coming back to the phone call with me. I presume the agent I was speaking with, that was attempting to assist me, was also sitting on hold with some-one to gain more information about my account and the questions I was asking. This is the worst customer service debacle Ive encountered. I of course have dealt with many call centers when attempting to conduct business with other companies ; however, this is by far the most inefficient and least helpful manner of assisting and answering questions for a client I have dealt with to date. 

When I realized I had been Ghosted I called back immediately and a male agent answered. I gave him all the details about what had just happened with my previous call to Freedom Mortgage. The male agent could see that some notes had been entered from the agent that had never come back to the line on XX/XX/XXXX. I then asked the male agent if he could verify if a check for my reimbursement had actually been readied and sent on XX/XX/XXXX? The male agent went off on a tangent and told me that wasnt the way escrow works and I wouldnt be getting any money back because it was already in escrow. I told the male agent that was not what the previous conversations I had had with other agents had been and that I was told a check was going to be issued and sent. The agent continued to spout his knowledge about escrow, etc. I told the agent that any overages or extra money going into my escrow account IS MY CHOICE. I told the agent that Freedom Mortgage doesnt get to just take the money they were mistakenly refunded from my countys mistake and not make compensation for the amount. 
Recently, I received a letter from Freedom Mortgage reminding me my loan modification paperwork is late and is due. I informed the male agent that I had specifically called Freedom Mortgage and informed them that until this payment issue with the property taxes was resolved I could not send my paperwork in because I had questions about the accuracy of the loan amount. The male agent saw a note in my account that reported I did in fact call Freedom Mortgage and inform them my paperwork would not be signed or returned until this matter was handled. The male agent told me that legally I had to have XXXX of my escrow amount in my mortgage and I would NOT be receiving any money back from Freedom Mortgage. I asked this agent why then was I told by previous agents that a check was going to be cut and mailed to me? The male agent put me on hold to find more information just as the female agent had done in my earlier phone call. And, just as my earlier phone call, I held for approximately 25-30 minutes and then I realized this agent was not coming back to the phone call either! What kind of customer service is this? The total of my escrow is {$6100.00}. The breakdown of the escrow is ; Homeowners Insurance {$2000.00} Yearly Premium Property Tax 1st Quarter {$2000.00} 1st Quarter Property Tax 2nd Quarter {$2000.00} 2nd Quarter TOTAL {$6100.00} TOTAL ESCROW DUE XXXX  Presuming the male agent is correct and I have to have XXXX of the total escrow in my account then that amount would be {$6100.00} divided by XXXX = {$1000.00}. So I would need an EXTRA {$1000.00} in my escrow account. Now, if, as an American citizen living in the XXXX, I believe I still should have control over my own money, as long as Im meeting my contractual obligations, I could make an extra payment of {$85.00} each month for the entire year, and fulfill the requirement of XXXX of the escrow amount needed in my account. That math would be ; {$1000.00} divided by 12 = {$85.00}. However ; because Freedom Mortgage got the advantage over me, by getting the refund from XXXX XXXX of {$2000.00}, Freedom Mortgage somehow believes THEY have the right to keep this excess amount of money and do with it what they want. Perhaps Freedom Mortgage can put the money in that account where an overage of $ XXXX sat for a year doing nothing. Which, youll read about in the next paragraph. 

I stumbled onto the fact that Freedom Mortgage had $ XXXX of my money sitting in an account and was not using it toward my escrow account or any other portion of my loan. I believe I discovered this during COVID and when I had to put my loan in forbearance. An agent I was speaking with told me about this amount of money and said it was an overage in my escrow account and Freedom Mortgage was holding the money in case I needed the funds. I had no idea what all this meant. I do know that it would have been nice if Freedom Mortgage had contacted me, via phone or letter, and informed me of this money and discussed with me what it was and talk to me about the best options for applying the money to my loan. Freedom Mortgage did not take that initiative and I dont believe that it is appropriate for Freedom Mortgage to hold a clients money and not give the client an opportunity to use it toward their mortgage. In fact, in my most recent phone call to Freedom Mortgage on Friday, XX/XX/XXXX, the agent I was speaking with on this date told me that Freedom Mortgage is not allowed to keep more than {$50.00} of a clients funds. This conversation arose when I called Freedom Mortgage XX/XX/XXXX, inquiring, again, about a check being sent to me for the property tax payment I made in XXXX of this year. 

Freedom Mortgage had approximately {$1900.00} of extra money that I found out about accidentally ( I had no idea it existed ). An agent I was speaking to in, I believe XXXX, told me about this extra money that Freedom Mortgage was holding for me in an account. I asked where did the money come from, why was it sitting in an account, what kind of account was this money sitting in and was it earning interest for me? Was the money earning interest for Freedom Mortgage? The agent told me the money was just sitting in an account in case I needed it for my account and, no it didnt earn interest and, no Freedom Mortgage didnt earn interest on the money. I asked the agent what that even meant. How could I use my money from this account if ( 1 I didnt know anything about it, ( 2 Freedom Mortgage had control over the money, ( 3 Freedom Mortgage would not refund the money. Somehow the conversation went to ; the amount of money was going to go toward the past escrow I owed. Okay, why didnt it get explained that way in the first place instead of leading me to believe I had a credit of {$1900.00}, laying around in some account at Freedom Mortgage? 

While talking most recently, XX/XX/XXXX, with a Freedom Mortgage agent, when I called about a refund check for the property taxes I paid, the agent informed me that Yes, there is a check waiting to be cut in the amount of $ XXXX dollars for me ; however, Freedom Mortgage will not send me the check until my loan modification paperwork has been signed and returned. The agent told me that because my account was in loss mitigation Freedom Mortgage would not send the check. The agent told me that because I was $ XXXX BEHIND on my mortgage I had to return the loan modification paperwork soon or the offer from Freedom Mortgage would expire. 

I told the agent that until I am made whole by Freedom Mortgage for the amount of money I paid for the 1st quarter property taxes I could not sign the loan modification paperwork because the paperwork showed I still owed the full amount of yearly property taxes and that the numbers on the loan modification paperwork were incorrect. The agent was extremely confused and what do you know, I was put on hold, again, as the agent herself attempted to seek out information about this check she saw waiting to be cut and sent to me and me having an issue with the loan modification paperwork. 

I again was on hold for over 30-40 minutes ; however, I want to give this agent from the XX/XX/XXXX, call huge kudos because as I sat on hold this agent had the courtesy to continue to come back on the line, as I sat on hold, to let me know she was still attempting to find an answer for me ( this is when I learned that Freedom Mortgage doesnt really have a large office with people working in it to help their clients. Freedom Mortgage spends no money for appropriate customer service and makes their own customer service employees have to sit on hold for far too long when they are attempting to help a customer ). The agent from XX/XX/XXXX, stayed in communication with me through her own frustrating time on hold and did an excellent job at getting me the best answer possible. Freedom Mortgage should give this particular agent a huge gold star for her ongoing and continuous customer service even though she had to sit on hold as long as I did. When the agent from the XX/XX/XXXX, call was finally able to acquire information on my account and come back on the line with me she, again, informed me that the XXXX Department ( the one person she spoke with that has more authority than she did ), informed her that until I submit my loan modification paperwork Freedom Mortgage is going to ( continue to sit on MY money and hold me XXXX ), which is over {$50.00}, until my paperwork is received. So, virtually, I received the same answer, just a different day and a different agent. Yet, no one at Freedom Mortgage will listen to what I am saying about the loan modification paperwork not having the correct amounts on it for this year. 

Ive purchased XXXX  houses and I have never had this much trouble with any of the mortgage companies I worked with in the past. I never had surprise increases in my monthly payments from shortages in my escrow account. I never had to hold for long periods of time on the phone only too be left sitting for up to 45 minutes. I have never had to have so many conversations about the same subject with, I cant even begin to count, how many different agents, and still have no resolution to my problem and/or questions. Or worse all the different conflicting answers I continually get from every agent I speak with at Freedom Mortgage. In fact, throughout the years of home ownership, not until Freedom Mortgage, did I really ever talk to any of the other mortgage companies I did business with once I signed on all the dotted lines and had final purchase of my home. Why? Because I didnt have trouble or questions all the time about what the heck was going on with my account. 

Can your department help me with this issue? I had to put my mortgage into forbearance during Covid because I lost my job and I am still struggling to find employment and make my mortgage payments. I am, currently making my mortgage payments, on time, as they show on the loan modification paperwork. 

I took some time to look up some information online about Freedom Mortgage today because I wanted to see if its just me that is having difficulties with this company or if other people have had problems with this company too. I found the following ; XXXX gives Freedom Mortgage XXXX out of XXXX stars, based on XXXX reviews. In XXXX, the Consumer Financial Protection Bureau fielded XXXX complaints about Freedom Mortgage loans. The most common complaints involved trouble during the payment process and applying for a mortgage. XXXX, XXXX, XXXX I am sending copies of this letter to the ; Consumer Financial Protection Bureau The Attorney General of the State of New Jersey ( Along with a completed complaint form ). 
Office of the Comptroller of the Currency XXXX XXXX XXXX XXXX Federal Housing Authority XXXX XXXX XXXX, CEO, Freedom Mortgage Perhaps your department or, one of the agencies I listed above, will have more luck in getting Freedom Mortgage to stay on the telephone long enough to get answers that are consistent and have some content that makes sense as to why I can not be refunded my money. Also, an answer about a revision of the remodification paperwork reflecting that Freedom Mortgage is overcharging me in my escrow account if they are unwilling to refund my money. 

I apologize for the length of this letter ; I hope it is understandable. I admittedly do not have full knowledge of how mortgage companies operate. This is why I am reaching out to your department. I need to understand why this is happening and if it is okay to be happening. My name is XXXX XXXX and I can be reached by email, XXXX, or by phone ( XXXX ) XXXX. My mailing address is XXXX XXXX XXXX XXXX, XXXX, Colorado, XXXX. 
I am sending a copy of my property tax coupon from the 1st quarter where you will see the confirmation number I received after making the payment Sincerely, XXXX XXXX XXXX 

c : Consumer Financial Protection Bureau The Attorney General of the State of New Jersey Office of the Comptroller of the Currency XXXX XXXX XXXX XXXX Federal Housing Authority XXXX XXXX XXXX, CEO, Freedom Mortgage P.S. Complaints about Freedom Mortgage are enclosed.