Consumer complaint received 2019-07-22
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company (CA)

I am a mortgage broker who is refinancing a past client of mine. Their current mortgage is being serviced by Freedom Mortgage. We have attempted to obtain a payoff demand from Freedom three times both email and fax each time since XXXX. Between then and now, my client has received several phone calls from Freedom loan officers soliciting them to refinance with Freedom under the guise of confirming my clients wishes to refinance with my company. This is borderline fraudulent activity in and of itself.

In my call with Freedom on Friday to check the status of the payoff demand, I was lied to several times on a recorded line by XXXX ID XXXX. She switched her story several times about whether Freedom had received the payoff request and whether she could see the payoff authorization form in her system or not. When I finally asked for a supervisor, she put me on hold for several minutes and then hung up on me. The initial payoff request has been sent several times between XXXX and now. Like I said, Freedom LOs have solicited my clients several times this week to refinance, so it is 100 % apparent the payoff request was received by Freedom. I understand wanting to retain your loans, but being blatantly dishonest and obstructing another mortgage companys business is not the right way to go about it. 

This is not only unethical but a complete obstruction of business. In addition, my client is being harassed by Freedom Mortgage attempting to get my client to refinance with them instead when all they want to do is close their loan with me. I told Freedom on Friday, XX/XX/XXXX, that if I did not have the payoff in hand by end of day I would file a complaint with the CFPB. I finally received the payoff this morning, XX/XX/XXXX, so they missed the more than fair deadline I gave them. I have heard the same situation occur with Freedom from many of my mortgage broker peers. I have attached 6 pieces of documentation to this complaint showing all three dates that we requested the payoff from Freedom. Each time the request was sent via email and fax. Enough is enough and their unethical business practices of misleading the consumer and obstructing business operations of other mortgage professionals must be brought to light. 
XXXX Freedom violated CFPB regulation 1026.36 - Prohibited acts or practices and certain requirements for credit secured by a dwelling. 

( 3 ) Payoff statements. In connection with a consumer credit transaction secured by a consumer 's dwelling, a creditor, assignee or servicer, as applicable, must provide an accurate statement of the total outstanding balance that would be required to pay the consumer 's obligation in full as of a specified date. The statement shall be sent within a reasonable time, but in no case more than seven business days, after receiving a written request from the consumer or any person acting on behalf of the consumer. When a creditor, assignee, or servicer, as applicable, is not able to provide the statement within seven business days of such a request because a loan is in bankruptcy or foreclosure, because the loan is a reverse mortgage or shared appreciation mortgage, or because of natural disasters or other similar circumstances, the payoff statement must be provided within a reasonable time. A creditor or assignee that does not currently own the mortgage loan or the mortgage servicing rights is not subject to the requirement in this paragraph ( c ) ( 3 ) to provide a payoff statement.