Consumer complaint received 2020-01-06
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Freedom Mortgage Company (CA)

Freedom Mortgage LN XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX CA XXXX XXXX XXXX XXXX We started a short sale with Freedom Mortgage on XX/XX/2019. Today, Freedom Mortgage has come up with even more illegal acts to add to the list of illegal acts they have committed on every file we have with them. 

Freedom Mortgage has outright denied the short sale due to the existence of Water District Lien and an HOA Lien. Freedom Mortgage is demanding for the seller to pay for a lien that is currently on title, in order that it be removed from title before they will continue their review of the short sale, and have refused to move forward with the short sale until the seller removes the lien from the property. 

There are several issues with this request. 

1. This is a violation of CFPB Guidelines, as they are committing illegal acts.

2. This is an illegal request, according to California State Law CA 580e. ( ( ( See attached code. ) ) ) 3. This is a Federal RESPA violation, as they are requiring liens to be removed outside of escrow.

4. This is a violation of servicing guidelines, as they are committing illegal acts Does the investor know this is going on?

5. The California Department of Real Estate has stated emphatically that hiding liens from the investor, which Freedom Mortgage is attempting to do, is in fact ILLEGAL 6. Freedom Mortgage is attempting to act as escrow title in a transaction for which they are not only not in that role, but more obviously, they do not have the training, education nor licensing to act as title or escrow in the loans they service. This is also a conflict of interest for them. 
7. Freedom Mortgage has no say in what happens to the other liens on the property. They do not have authority to dictate ANY TERMS on ANY OTHER LIENS. Freedom Mortgage needs to keep their focus on the loans they do service and do this appropriately. So far, they have shown a gross inability to service their loans appropriately since they do not even know the laws for the state AND COUNTRY in which they are servicing. **They do not understand current State and Federal Laws!!!!!!

***These directives are coming from Freedom Mortgages Underwriting department. Freedom Mortgage has trained their underwriters to commit these illegal acts, and as such needs to take full responsibility. 

We have explained several times that these liens will be resolved at the close of escrow - just like any liens on the other 3000 short sales we have done. 


-- -- -- -- -- -- - IT IS ILLEGAL TO FORCE A HOMEOWNER TO remove Utility Liens and HOA Liens from the title report. 


The language directly from the FHA handbook 4000.1 is this : ( ( ( see attached ) ) ) Pre-Foreclosure Sales Eligibility Condition of Title ( III.A.2.l.ii. ( B ) ( 4 ) ). The Mortgagee must ensure that all FHA-insured mortgaged Properties sold under the PFS Program have clear marketable title. 
Before approving a Borrower for participation in the PFS program, the Mortgagee must obtain a title search or preliminary report and determine whether the title is impaired by : unresolvable title problems ; liens that can not be discharged as permitted by HUD ; or a PACE obligation NONE OF THE ISSUES ABOVE APPLY TO THIS FILE. THERE ARE NO UNRESOLVABLE TITLE ISSUES. THERE ARE NO LIENS THAT CAN NOT BE DISCHARGED. THERE IS NO PACE OBLIGATION. -- -- -- -- - THERE ARE NO CLOUDS ON TITLE. -- -- -- THERE ARE NO ISSUES THAT WOULD IMPEDE CLOSING!!!!!!!!!!! 


It is apparent that Freedom Mortgage is exceptionally unqualified to be in this industry. They do not have any knowledge of not only the State of Californias Laws, but also Federal Law and this is required if they are going to do business in the State of California, or quite frankly in any state. 


Since we end up having to file the same complaints on every file we have with Freedom Mortgage it is apparent they are not training their employees at all. Their employees do not know how to read a HUD, are attempting to act as title and escrow ( which is a conflict of interest ), and do not understand Lien Priority.  They have a training program that seems to be based on learning from their mistakes and CFPB complaints.