Consumer complaint received 2022-01-04
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company (RI)

Unfair and deceptive practices from my mortgage service provider - Freedom Mortgage I was a customer of XXXX XXXX since XXXX. My loan was sold to Freedom Mortgage sometime in XXXX. In XXXX of XXXX I refinanced my loan with Freedom Mortgage. 

On XXXX XXXX I received an updated escrow analysis ( attached ) that claims that I have an anticipated shortage of {$5300.00}. Having refinanced with this same company because I wanted to lower my monthly payment this was a surprise to me. I certainly could understand a slight increase in my taxes and would have understood a shortage of a few hundred dollars. But as I reviewed the escrow analysis I noticed that the projected City tax was the same amount ( {$5000.00} ) as the prior year. A shortage of $ XXXX had me perplexed. My first call to Freedom to challenge the escrow analysis was on XX/XX/XXXX. I requested additional information as to how my escrow payment could almost DOUBLE every month. Between XX/XX/XXXX and XX/XX/XXXX I have spent 25 hours on the phone with freedom mortgage customer service colleagues. My first few calls got me nowhere. I was transferred to dead ends after waiting on the line for multiple hours. Agents continued to say that my escrow shortage was accurate. Understanding that there is no logical way that my tax/insurance disbursements would result in a $ XXXX shortage I kept calling. Finally I threatened to report this matter to XXXX XXXX XXXX XXXX if not resolved. I received a call immediately on XX/XX/XXXX. I was told that my shortage would be researched and a request to change my city tax disbursements from Annually to XXXX would be submitted. 

The root cause of the problem is plain and simple. I would not have a shortage if they had continued to pay my taxes quarterly. On XXXX XXXX I was notified that my request to have my taxes paid quarterly was denied. I was told that a third party provider of Freedom Mortgage called XXXX XXXX who is responsible for my tax/insurance disbursements will not change my disbursement from annual to quarterly because of the {$40.00} a year in savings I would receive if my taxes were paid annually. I was told that this is in the customers best interest. In what world is me paying an additional {$440.00} A MONTH to save {$40.00} a year in an annual premium, in my best interest? This is a deceptive practice used by a shady mortgage servicing company to try and get my money into their possession. 

To explain my case I have provided my own escrow analysis. A few points to understand. My City taxes were paid in the amount of {$5000.00} in XX/XX/XXXX by Freedom. Therefore I am paid through XX/XX/XXXX. 

Escrow balance as of XX/XX/XXXX ( including my XXXX payment ) {$1400.00} Monthly payment ( prior to XX/XX/XXXX escrow analysis ) Principal & Interest {$1400.00} Escrow Payment {$520.00} Total Payment {$1900.00} As stated in the XX/XX/XXXX escrow analysis. Below are my disbursements Fire Tax {$170.00} per quarter ( XXXX, XXXX, XXXX, XXXX ) Homeowners Insurance {$1300.00} annual premium paid in full. Next due XX/XX/XXXX City Tax {$5000.00} ( paid in full XX/XX/XXXX ) The attached XXXX doc is designed to explain how if Freedom Mortgage were to pay my taxes quarterly, There would be one instance over the next 12 months where I would not have the sufficient funds to cover the minimum escrow balance required per Freedom Mortgage ( {$1100.00} ). This one instance would be in the month of XX/XX/XXXX after quarterly City tax and annual homeowners insurance was paid out. My escrow balance, after XXXX disbursements would be {$1100.00} and I would be {$51.00} below the required minimum account balance. 

Note- My analysis assumes I make my minimum payment ( {$1900.00} ) timely. With {$520.00} applied to escrow each month.