Consumer complaint received 2025-11-14 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Loan sold or transferred to another company
Company: Freedom Mortgage Company
State: AL

Complaint narrative:
This complaint concerns systematic servicing misconduct by Freedom Mortgage, a repeat CFPB offender, whose actions constitute * * intentional sabotage of insurance coverage * * and illegal servicing practices to prevent a fair loss mitigation resolution for an FHA-insured loan. 

* * TIMELINE OF VIOLATIONS AND SERVICING FAILURE : * * 1. * * Transfer/Payment Error ( XX/XX/XXXX XX/XX/year> ) : * * Freedom acquired the loan ( XX/XX/XXXX ) but failed to board it, advising me to call back in XXXX. This caused my XXXX payment to be misdirected. Despite receiving the payment credit on XX/XX/XXXX, Freedom sent contradictory notices on * * XX/XX/XXXX and XX/XX/XXXX * * reporting me as * * TWO payments past due * * and threatening credit reporting. 

2. * * Insurance Sabotage ( CRITICAL ERROR ) : * * Freedom Mortgage deliberately issued payment for my annual homeowner 's insurance ( XXXX ) but * * intentionally underpaid the premium by exactly \ {$1.00} * *. This calculated underpayment could have caused the policy to lapse, which is a clear attempt to force me into higher-cost, less-protective force-placed insurance. This action demonstrates * * intentional financial sabotage * *, which immediately compounded the delinquency caused by their transfer error. 

XXXX. * * Financial Shock & NOE ( XX/XX/year> ) : * * This servicer-caused crisis ( transfer error, insurance sabotage, and a concurrent \ {$920.00} water bill hardship ) led to the submission of a * * Complete Loss Mitigation Application and a Formal Notice of Error ( NOE ) * * under RESPA on XXXX * XX/XX/year> * *, detailing these payment failures. 

XXXX. * * Flawed Denial & Arrearage Cured : * * Freedom Mortgage denied all modification options ( XX/XX/year> ) while offering an unsustainable Repayment Plan. I submitted * * \ {$3500.00} * * on * * XX/XX/year> * *, to fully cure the past-due balance. This payment renders their denial moot and confirms my ability to maintain the loan, demanding the account be marked * * CURRENT * * immediately. 

XXXX. * * LACK OF SPOC ( VIOLATION ) : * * As of today, * * XX/XX/year> * *, Freedom Mortgage has * * failed to assign a Single Point of Contact ( SPOC ) * * for my delinquent XXXX loan, a persistent violation of 12 C.F.R. 1024.40. 

XXXX. * * DECEPTIVE COMMUNICATION : * * Freedom Mortgage uses * * multiple, unverified email addresses * * ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX & many others ) that risk mandatory notices being spam-filtered. Furthermore, a representative provided * * risky verbal advice on XX/XX/XXXX to hold payments * *, refusing to confirm this advice in writing, demonstrating bad-faith servicing. 

* * I DEMAND : * * 1. * * Account Status : * * The account must be marked * * CURRENT * * immediately, due to the full payment of arrears.

2. * * Immediate Appeal Review : * * Freedom Mortgage must review its denial considering the evidence of the servicing transfer failure and the intentional insurance sabotage.

3. * * SPOC Assignment : * * Immediate assignment of a SPOC.

4. * * Compensation : * * Correction of all erroneous credit reporting, fees, and a * * written guarantee that no future insurance payment underpayment will occur. * *

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