Consumer complaint received 2026-06-01 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: Freedom Mortgage Company
State: FL

Complaint narrative:
This complaint relates to an appraisal used in a refinance transaction that has prevented the loan from proceeding. Issue Summary I am submitting a complaint regarding a residential appraisal used in connection with a refinance transaction through my mortgage lender. The appraisal value of {$650000.00} is materially inconsistent with observable market data and has directly prevented me from proceeding with a refinance that would consolidate my existing mortgage, HELOC, and other debts. A reconsideration of value ( XXXX ) was requested through the lender and was denied. However, no meaningful explanation or supporting reasoning was provided for the denial, and my request to speak with someone in that department was denied at every request. XXXX Detailed Description This complaint is not based on a general disagreement with value, but rather on concerns that the appraisal may not meet applicable standards for credible, market-supported results under FHA guidelines and USPAP. Specifically : The appraisal reflects a price-per-square-foot conclusion of approximately XXXX XXXX ft, while comparable properties within the same subdivision and immediate market area are consistently transacting within an approximate range of {$400.00} $ XXXX ft ( a variance of approximately 2530 % ) The appraised value of {$650000.00} falls materially outside the observed range of recent comparable sales within the same subdivision, which range from approximately {$900000.00} to {$980000.00} Analysis of comparable sales indicates that the result appears to be driven by the selection of properties that are not the most similar to the subject property, resulting in a significantly lower value conclusion This is not a minor variance or typical appraisal difference. Based on multiple independent market observations and discussions with unaffiliated mortgage professionals, a valuation at this level for a property of this type, age, and conditionparticularly one located in XXXX XXXX XXXX within the Nocatee areais not consistent with prevailing market conditions. XXXX Concern With Lender Response While I understand the independence requirements applicable to appraisals, I am concerned that : The reconsideration of value process did not result in a substantive or transparent review No detailed explanation was provided as to why the concerns raised were rejected It is unclear whether the appraisal was evaluated for compliance with XXXX or FHA requirements for credible assignment results Repeated attempts to obtain clarification or escalation within the lender have not resulted in meaningful engagement or resolution. XXXX Requested Resolution I am requesting that the lender : XXXX. Provide a detailed written explanation of the basis for denying the reconsideration of value, including whether the appraisal was reviewed for compliance with USPAP and FHA standards XXXX. Confirm whether the appraisal was reviewed by an internal appraisal review, collateral risk, or compliance function XXXX. Conduct ( or document that they have conducted ) a compliance-focused review of the appraisal to determine whether it meets standards for credible, market-supported results XXXX. Clarify what options, if any, are available to obtain a new or independent appraisal within the context of this transaction XXXX. To provide additional transparency into the reconsideration of value ( XXXX ) process. I I request any available information regarding how such requests are evaluated and the extent to which they result in changes to the original appraised value ( e.g., internal policies, benchmarks, or general outcome trends, if available ). To the extent possible, I also request clarification as to whether the lender tracks or monitors the effectiveness of its XXXX process, including how often submitted concerns result in modified valuations. This information will help clarify whether the review process functions as a substantive evaluation of appraisal credibility, or simply a check-the-box exercise, which seems highly unethical. XXXX Impact As a direct result of this appraisal, I have been unable to move forward with a refinance that would materially improve my financial position by consolidating my main mortgage, my HELOC, and additional debt into a single loan. The current situation has created both financial, emotional and transactional harm, and I am seeking a fair and transparent review based on objective market data.

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