Consumer complaint received 2025-03-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Freedom Mortgage Company
State: FL

Complaint narrative:
Subject : FORMAL COMPLAINT AGAINST FREEDOM MORTGAGE CORPORATION FOR FRAUDULENT FORECLOSURE PRACTICES Dear Sir/Madam, I am filing a formal complaint against Freedom Mortgage Corporation for its fraudulent foreclosure practices, misrepresentation of loan ownership, violations of federal and state law, and illegal loan servicing misconduct.

Freedom Mortgage has failed to demonstrate lawful standing to enforce my mortgage, has violated key consumer protection laws, and has engaged in unlawful foreclosure attempts, in direct violation of : Truth in Lending Act ( TILA ) 15 U.S.C. 1641 ( Failure to disclose mortgage ownership and servicing rights ) Real Estate Settlement Procedures Act ( RESPA ) 12 U.S.C. 2605 ( Failure to respond to Qualified Written Requests ) Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s-2 ( b ) ( False credit reporting of mortgage delinquencies ) Uniform Commercial Code ( UCC ) Articles 3, 8, and 9 ( Improper note assignment and securitization fraud ) Federal Reserve Operating Circular No. 10 ( OC-10 ) Borrower-in-Custody ( BIC ) Program Violations ( Failure to prove perfected ownership interest ) Freedom Mortgage 's Fraudulent Practices Include : Unlawful Foreclosure Attempts Without Legal Standing Freedom Mortgage has failed to produce the original wet-ink promissory note, violating UCC 3-305.

The loan was securitized, severing the note from the mo

rtgage lien, making enforcement of foreclosure legally impossible under UCC Article 8. Mortgage Electronic Registration Systems ( MERS ) has publicly admitted it does not own mortgage loans and lacks standing to assign them. Therefore, any assignment through MERS is void.

Failure to Respond to Qualified Written Requests ( QWR ) Under RESPA, 12 U.S.C. 2605 ( e ), Freedom Mortgage is required to provide a full accounting of loan ownership upon request. It has failed to do so.

False Credit Reporting & Consumer Fraud Freedom Mortgage has falsely reported mortgage delinquencies without verifying the legal status of my loan, violating 15 U.S.C. 1681s-2 ( b ) ( FCRA ).

Violations of Federal Reserve Regulations BIC Program Loans pledged as collateral under the Borrower-in-Custody ( BIC ) program must be legally owned and properly assigned. Freedom Mortgage has not demonstrated compliance with Federal Reserve OC-10 guidelines.

The Federal Reserve mandates that any depository institution participating in the BIC program must ensure the proper recording, control, and security interest perfection of all pledged loans. Freedom Mortgage has failed to produce sufficient documentation to establish that it holds a valid security interest in the loan under these regulations. 

The Federal Reserve Bank requires strict verification of collateral integrity, and any failure to maintain proper records or demonstrate legal ownership invalidates Freedom Mortgages ability to claim a secured interest in the property.

In accordance with Federal Reserve lending policies, institutions using the BIC program must ensure unbroken chain of title, lawful assignment, and compliance with UCC Articles 8 & 9 governing negotiable instruments and secured transactions. The failure to establish clear legal title nullifies Freedom Mortgages authority to foreclose.

The lack of documentation indicating proper perfection of security interest under UCC-1 financing statements raises questions about whether Freedom Mortgage has illegally double-pledged collateral or misrepresented ownership.

The Federal Reserve specifically prohibits the use of improperly assigned or unauthorized loans as collateral, making Freedom Mortgages foreclosure efforts based on invalid claims legally indefensible.

Securitization Fraud The Loan Was Already Paid Off Per securitization guidelines, the loan was paid in full once pooled into a mortgage-backed security ( MBS ).

Under Federal Reserve banking practices, securitized loans convert into securities, not enforceable debt instruments.

Freedom Mortgage lacks a valid chain of title to foreclose.

Promissory Note Fraud Borrower Funded the Loan Promissory notes function as cash-equivalent securities.

Freedom Mortgage never loaned actual funds ; instead, it monetized the borrowers promissory note, making the borrower the true creditor. 

DEMAND FOR ENFORCEMENT ACTIONS : Immediate Cease & Desist Order on Foreclosure Action. 

Full Documentation of Loan Ownership & Accounting.

Correction of False Credit Reporting.

Financial Penalties for Violations of TILA, RESPA, FCRA, and UCC.

Full-Scale Audit of Freedom Mortgages Loan Servicing & Foreclosure Practices .

If this matter is not immediately addressed, I will be pursuing federal and state legal action against Freedom Mortgage for fraud, wrongful foreclosure, and consumer protection violations. 

REVOCATION OF ANY POWER OF ATTORNEY PREVIOUSLY GRANTED TO FREEDOM MORTGAGE I hereby formally REVOKE, REMOVE, AND RESCIND any and all known or unknown, verbally given, and/or written Power of Attorney that I may or may not have granted to Freedom Mortgage Corporation , including but not limited to any of its affiliates, subsidiaries, third-party agents, and servicers.

This revocation is made in accordance with : Uniform Power of Attorney Act ( UPOAA ) 110 Right to Revoke a Power of Attorney State Power of Attorney Laws governing my jurisdiction As of the date of this letter, Freedom Mortgage and all associated parties are strictly prohibited from acting on my behalf in any capacity, including but not limited to : Loan Servicing & Modification Foreclosure Actions & Property Seizure Financial Transactions & Account Management Any continued attempt by Freedom Mortgage or its affiliates to act as my agent shall be deemed fraudulent and subject to further legal action. 

Sincerely, /XXXX/ XXXX XXXX XXXX XXXX

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