Consumer complaint received 2026-06-11 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: OH

Complaint narrative:
Freedom Mortgage failed to manage my escrow account correctly, they created an escrow shortage through its own administrative error ( wrong parcel ID ), tried to charge me for taxes on two separate parcels, and is now demanding I pay for that shortage. I believe this violates RESPA/Regulation X, which requires servicers to properly manage escrow and forbids them from making borrowers pay for the servicers own mistakes. In XX/XX/XXXX, Freedom Mortgage refunded {$3900.00} from my escrow account, stating my XXXX property taxes were paid based on a XXXX tax report. In XX/XX/XXXX, my monthly payment jumped from {$1600.00} to {$2500.00} ( {$870.00} more ) after Freedom Mortgage claimed I did not pay my XXXX taxes and that they paid them in XXXX with their own funds, creating an alleged escrow shortage I must catch up on. XXXX XXXX confirmed the taxes were not paid because Freedom Mortgage used the wrong parcel ID : XXXX. The county said this R parcel is an internal Residential Incentive District label and is not a separate taxable parcel with additional taxes. The actual taxable parcel is XXXX, with a tax bill of {$2000.00}. Freedom Mortgage received a report for the R parcel showing {$0.00} due and therefore did not disburse taxes. They failed to update their records even after the parcel ID issue was identified. Freedom Mortgage also attempted to charge me for taxes on two parcels ( XXXX and XXXX ), showing a clear pattern of administrative error. XXXX XXXX confirmed on XX/XX/XXXX that my taxes are now paid and current, but there remains a late penalty of {$200.00} for the XXXX payment. Freedom Mortgage has paid the taxes but is demanding I cover the alleged shortage. They also falsely claimed a special assessment is my responsibility. The county auditor confirmed this is just an administrative arrangement between the county and city : the county collects my taxes through escrow and then distributes part to the city. Neither I nor Freedom Mortgage has any separate obligation for this. Freedom mortgage did remove the 2nd parcel from my newest escrow analysis. Freedom Mortgage responded to my dispute and claims there was no servicing error and that the shortage came from updated tax activity and escrow adjustments. That is false. The shortage exists solely because Freedom Mortgage used the wrong parcel ID, failed to update records, did not pay taxes when due, and even tried to charge me for two parcels. This is their mistake, and I should not be forced to pay for it. Additionally I spoke with the revenue collections manager in XXXX XXXX and she stated this " It looks like the mortgage company paid taxes on the old parcel through XX/XX/XXXX and then paid on the new parcel on XX/XX/XXXX. XXXX and XX/XX/XXXX. '' She also stated my parcel ID switched on XX/XX/XXXX. Freedom mortgage did not catch this change for almost 3 years.

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