Consumer complaint received 2023-04-28 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company
State: FL

Complaint narrative:
Subject : Complaint Against Freedom Mortgage for Withholding Insurance Disbursement Dear Consumer Financial Protection Bureau, I am writing to file a complaint against Freedom Mortgage for holding onto my home insurance disbursement and forcing me to complete repairs before releasing the funds. It has been over two months since they received the insurance payment, and they continue to claim that my home is not completely repaired based on inspection they commissioned who was instructed to only check a portion of the repairs. This is despite the fact that the funds should be released directly if the amount is under {$40000.00}. 

My home was severely damaged by Hurricane Ian, and a public adjuster estimated the repair costs to be {$220000.00}. The insurance company, UPC, paid only {$30000.00}, which significantly undervalues the damages. I have already spent {$100000.00} on repairs and have provided proof, including before and after photos, material receipts, contractor invoices, and lien releases. 

Freedom Mortgage initially informed me that they would endorse the insurance check and return it within a week, as the amount was under {$40000.00}. However, after receiving the check, they claimed that my loan was not current at the date of loss, and the limit changed to {$20000.00}. This is not true, as my loan was never late, and I requested and was approved to Loss Mitigation the day after the hurricane. This can be verified through my credit report, which shows no late payments on any account. 

Since the limit was reduced to {$20000.00}, Freedom Mortgage required an inspection verifying the percentage of work completed and a waiver of lien/sworn statement from the contractors. The change in requirements after receiving the check is highly suspicious, but I had no choice but to comply. 

Despite explaining my situation through multiple calls and emails, Freedom Mortgage insisted on an inspection that takes weeks to be done. The inspector assessed only part of the repairs and submitted a report claiming only 56 % of the work was completed, without providing any justification. 

While waiting for the inspection, I received a check from Freedom Mortgage for {$7500.00} without reasonable explanation. 

I have been forced to provide proof that the work was completed, including documentation of all repairs, photos, contractor invoices, and lien releases. Even if the work was not done, this is abusive, as they are forcing me to pay for repairs that cost more than estimated before disbursing insurance payments. 
I have submitted all the requested documents and they have accepted and finally submitted another payment of {$9400.00}, which Im yet to receive, totaling 56 % or the amount paid by the insurance. 

Freedom Mortgage has held the insurance funds for months without reasonable justification. I never chose them as my mortgage company, as they purchased my loan from another company. I am now stuck in a difficult situation, hoping for additional state funds to cover repair costs that the bankrupted insurance company didnt pay knowing Ill have the same problem when the checks need to be endorsed by Freedom Mortgage again.

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