Consumer complaint received 2025-12-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Loan estimate or other related disclosures
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
SUMMARY OF COMPLAINT We attempted to refinance our mortgage with Freedom Mortgage beginning in early XX/XX/year>. Throughout the process, we received multiple Loan Estimates containing significant and unexplained changes to the loan amount, PMI, interest rate, and cash-to-close. These changes were never proactively communicated to us despite repeated attempts to obtain clarification.

TIMELINE & ISSUES 1. Extreme and Unexplained Disclosure Fluctuations On XX/XX/year>, our Loan Estimate showed + {$8500.00} due back to us at closing. 
On XX/XX/year>, a new estimate stated we owed {$8900.00} at closing. 
This nearly {$17000.00} swing occurred without any change in our financial circumstances. 

The loan amount fluctuated between {$450000.00} and {$450000.00}, and PMI shifted from {$150.00} to {$360.00} with no documentation or explanation. 

XXXX. Incorrect Appraisal Setup & Loss of Original Rate We informed loan officer XXXX that we expected our home to appraise for {$480000.00} {$480000.00}. He instead entered {$500000.00} into their system, creating unrealistic expectations. 

The appraisal that followed was not an inperson inspection. A third-party photographer took photos, and an appraiser reviewed them remotely. The resulting value of {$470000.00} did not account for more than {$34000.00} in verified improvements, including flooring, pool work, electrical updates, and landscaping.

This incorrect valuation setup and appraisal method caused us to lose our originally quoted rate of 5.875 %. 

XXXX. Instruction Not to Make Our Mortgage Payment Freedom Mortgage explicitly instructed us * * not * * to make our XX/XX/XXXX mortgage payment and stated we would have two months without payments during the refinance process.

This turned out to be incorrect. Because of their delays and errors, we were forced to make the payment unexpectedly, causing financial strain. 

XXXX. Unauthorized Rate Increase On XX/XX/XXXX, after speaking with representatives XXXX and XXXX, we were told explicitly that no new disclosure would be issued until further discussion. 

Despite this, later that day we received a Loan Estimate increasing the rate from 6.375 % to 6.675 % without notice, authorization, or explanation. This contradicts TRID disclosure requirements and the assurance we were given. 

XXXX. Forced to Switch Lenders at a Higher Rate Due to Freedoms repeated errors, lack of responsiveness, and disclosure inconsistencies, we were forced to abandon the refinance entirely and move to a new lender. The new loan carries a higher interest rate, increasing our monthly payment and longterm costharm caused directly by Freedom Mortgages mishandling of our refinance. 

FINANCIAL HARM Although Freedom did not collect appraisal or underwriting fees from us, their misrepresentations and failures caused real monetary damage, including : Having to make the XXXX mortgage payment after being told we would not need to. 
Loss of the 5.875 % rate originally quoted. 
Being forced into a higher-rate loan with a new lender.

Increased monthly payment and longterm interest costs.

The increase from 5.875 % to the rate we were forced to accept results in approximately : {$240.00} more per month {$14000.00} in additional cost over 5 years {$86000.00} more in interest over 30 years Please note that we were unable to save all of the disclosures sent to us and Freedom does not offer a way for us to gain access to previously signed documents. So if additional information is needed, we will need to request that from them directly.- There were no less than 13 disclosures sent to us during this time.

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