Consumer complaint received 2024-05-15 00:00:00
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Delays in the application process
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
We started the VA loan assumption process with Freedom Mortgage in XXXX XXXX XXXX. Our initial closing date was set as XX/XX/2024. 

On XX/XX/2024 we received confirmation that they received the third party authorization form that we sent in to start the assumption process. They said someone would call us to set up an initial intake phone appointment. No phone call was received, and I called Freedom Mortgage on XX/XX/2024 and was able to set up an appointment for XX/XX/XXXX ( soonest available ) to speak with someone to start the assumption process. Not satisfied with this I called again on XX/XX/XXXX and was able to move that appointment up to XX/XX/XXXX. 

We spoke with a loan officer on XX/XX/XXXX over the phone and provided a bunch of financial information related to the sale of the home and our personal finances. She noted the process would likely take XXXX days from the time that we sent in the required documents which she would email to us. On XX/XX/XXXX we received an email from her with a list of documents to provide, all were provided on XX/XX/XXXX. On XX/XX/XXXX we received the electronic documents to sign as well as XXXX document that required an ink signature and needed to be mailed. Everything was signed/provided/mailed on XX/XX/XXXX. We needed to call Freedom Mortgage to get them to reset the XXXX XXXX login as it was incorrect when we tried using it. 

We received no further communication or confirmation of receipt of these documents despite emails from me to Freedom Mortgage and our loan office on XX/XX/XXXX and a phone call on XX/XX/XXXX. The phone call on XX/XX/XXXX confirmed the loan was in underwriting but could not provide any further information as to the timeline going forward or if we would be able to close on XX/XX/XXXX. 

I called Freedom Mortgage again on XX/XX/XXXX to attempt to gather more information. Nobody was available to speak with me so they placed a ticket to have someone call be back later. I was called XX/XX/XXXX and they said I should be hearing from a processor soon who would request additional documents and then send to final underwriting. 

There was no contact from the processor. I called Freedom Mortgage once more on XX/XX/XXXX, our closing day. They said they had to put in a ticket to have the loan processor call me. We moved our closing date to XX/XX/XXXX. 

My husband called Freedom Mortgage and sent an email on XX/XX/XXXX and was unable to get a response via email. They told him they would put in a ticket to have someone call us and mentioned they are short staffed. 

We received a call from our loan processor on XX/XX/XXXX. She stated it could be another XXXX days due to them being busy and did not think we would be able to make a XX/XX/XXXX closing date. She also asked for a XXXX transfer order - I was unsure what that was as my husband is XXXX XXXX and has never been associated with the XXXX. She did not know what it was either. I told her we need to process a substitution of entitlement as well as that was a contingency for purchasing the home, and she did not know what that was either. She was unable to give any additional timeframe for closing. She stated she would be sending an email for us to provide them with additional documents. 

We did not receive any email by XX/XX/XXXX at XXXX so I sent an email to the loan processor requesting that email. She sent an email with the document request about XXXX minutes later. All of the requested documents were returned to Freedom Mortgage XX/XX/XXXX at XXXX. We received a second email on XX/XX/XXXX at XXXX requesting those same documents from a different processor and we advised them everything was already returned and requested a confirmation of receipt. 

We did not receive a response until XX/XX/XXXX stating that the processor received the documents and once they were reviewed she would let us know. I asked her when she planned on reviewing the documents given our closing date is XX/XX/XXXX and she said they will not be able to provide a closing date at this time due to volume. 

At this point, my position is that we have completed the assumption package. Per VA guidelines, " In performing the requirements of paragraphs ( l ) ( 1 ) ( i ) ( A ) or ( l ) ( 1 ) ( i ) ( B ) of this section, the holder must complete its examination of the creditworthiness of the prospective purchaser and advise the seller no later than XXXX days after the date of receipt by the holder of a complete application package for the approval of the assumption. '' As they are not able to provide a final deadline for processing this assumption package, that tells me they are not planning on abiding by this rule. 

We are not able to get timely communication or responses to our inquiries and this is holding up our ability to purchase our home as well as have the substitution of entitlement performed to allow the veteran we are purchasing the home from to have his entitlement reinstated so he is able to use his VA benefits to purchase another home. 

Every step of the process has been delayed by Freedom Mortgage and has required multiple phone calls and emails to move the process along -this feels very intentional on the part of Freedom Mortgage to delay the process.

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