Consumer complaint received 2016-04-28
Product: Mortgage — FHA mortgage
Issue: Application, originator, mortgage broker — 
Company: Freedom Mortgage Company (FL)

FREEDOM MORTGAGE IS GUILTY OF INTENTIONALLY DEFRAUDING THE GOVERNMENT, INSURANCE FRAUD, CONSUMER FRAUD, WIRE FRAUD, LYING TO FEDERAL INVESTIGATORS, RACKETEERING AND EXTORTION. XXXX XXXX AND XXXX ARE ACCOMPLICES INTENT TO DEFRAUD THE GOVERNMENT ~ They have written countless loans with escrow errors, illegal disclosure forms and misleading payments to entice consumers to refinance. These intentional errors are part of a much larger racketeering scam involving the service companies. They focus on elderly and less educated people and FHA insurance. These minor errors multiply into illegal home theft and the taxpayer and the government funds this scam with FHA Insurance payments when they illegally cause a default. 
INSURANCE FRAUD ~ Escrow errors, failure to pay items, and paying the wrong items are common. All of the mistakes eventually cause the payments to skyrocket, they scare the consumer, and they take they home using PMI and FHA insurance to fund the scam. 
CONSUMER FRAUD ~ When cornered, they lie to consumers and instruct the Service companies to commit fraud and play games with the payments. Random fees are tacked on and they remain unchallenged in many cases, arrogant and as dishonest as anything I have ever seen in white collar, blue collar or inner city crime. They operate with perceived immunity and they need to be punshed and fined to the fullest extent of the law. 
WIRE FRAUD ~ They are crossing state lines, using all forms of electronic communication and providing false and misleading information to everyone, everywhere, every step of the way. 
RACKETEERING ~ Here is the big scam ... creating a need using fraud. Grandma has a {$1600.00} Social Security check and Freedom Mortgage uses fraud and lies on official loan disclosure forms to make the payment appear low and appealing. Grandma knows {$840.00} a month is a lot of money in her case, but it still gives her $ XXXX+ for food, medicine, car insurance, gas and incidentals. One year into the loan, however, the payment skyrockets. The loan is also with a new, third party, and they wo n't answer questions or return phone calls, so the consumer is trapped, paying required items, back payments and late fees. More on the extortion part of the scam later. This 3rd party loan servicer now makes escrow errors and the payment in this case went from {$840.00} to {$1400.00}. No explanation. " Pay or leave grandma ''. When you add the mystery fees, random charges they add, and escrow that needs to be refunded, you have a scam that has not only taken grandma 's entire social security check, they have made this sweet grandma or grandpa homeless. This has happened to the elderly and others over and over again. Companies like XXXX and XXXX feed on the dying carcasses of the victims while Freedom Mortgage completes a bleed out of cash the XXXX would envy. Money stolen from everyone, even far away taxpayers with no idea this scam is occurring. 
EXTORTION ~ When cornered by a consumer the games begin. They lie and stall while trying to foreclose behind the consumer 's back, so they can defraud the government and the insurance industry. This particular scam has now had XXXX ( XXXX ) false replies filled with lies to intentionally mislead government investigators at the CFPB. Over and over again they disguise intentional fraud and racketeering, as a legitimate business model. They claim fraud on origination can simply be ignored because the third party has the right to raise the escrow amount for any reason at all, including loan origination fraud. 

Freedom Mortgage, XXXX and XXXX should all lose their licenses immediately and the assets liquidated to pay the consumers in my opinion. Their defense is always " inadvertent because they are stupid and incompetent '' so we appreciate the honesty but failure to hire and train qualified people to comply with laws is cause for immediate license suspension.