Consumer complaint received 2024-11-07 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: FL

Complaint narrative:
I am writing to seek clarification regarding the insurance practices implemented by Freedom Mortgage on residential mortgages. In late XXXX, I received a notice from Freedom Mortgage, dated XX/XX/XXXX, stating that I was required to obtain flood insurance. Upon receiving this notice, I contacted Freedom Mortgage to understand the requirements. The Freedom Mortgage Representative informed me that I needed to secure insurance retroactively from XXXX, or they would purchase insurance on my behalf and charge me for it if I did not provide proof of insurance within 45 days of receipt of the letter. 

I explained to the Freedom Mortgage Customer Service Representative that I would attempt to purchase insurance ; however, the state of Florida was under several declarations of emergency, which prohibited any insurance company in Florida from issuing or binding any insurance policy during the pending storms. Despite this, Freedom Mortgage purchased insurance after the fact and is now charging me for a policy issued in late XXXX. In fact, when I spoke to the Customer Service Representative, he informed me that a flood policy had not been obtain and he was not able to provide me the insurance company information or policy information during our telephone conversation. I am uncertain if this practice is permissible under state or federal law, and I seek further clarification regarding the legality of forcing clients to acquire insurance without providing due process or ample time to purchase adequate insurance. Subsequently, I was able to purchase insurance from XXXX on XX/XX/XXXX, with an effective date of XX/XX/XXXX. 

On XX/XX/XXXX, I received a letter from Freedom Mortgage, dated XX/XX/XXXX, stating that they had not received proof of my policy and that they had acquired coverage from XXXX XXXX XXXX XXXX with an issue date of XX/XX/year>. However, when I spoke to the Freedom Mortgage representative on XX/XX/XXXX, I informed them that I had a policy, which was emailed, and the agent confirmed receipt. Additionally, the service agent informed me that he updated the file to reflect that I had insurance. However, the latest correspondence contradicts this information. 
It is my impression that Freedom Mortgage is actively deceiving its customers and committing insurance fraud by providing policies that no other company was able to issue due to the state of emergencies in Florida. Furthermore, there is a significant difference between the policies, which I believe are predatory and an example of price gouging to profit from consumers limited by natural disasters. 
I also believe that the predatory practices of Freedom Mortgage violate Federal Trade Commission policies, as the insurance company they are using is based out of New Jersey. 

Thank you for taking the time to review my concerns and provide guidance.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation