Consumer complaint received 2025-01-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Freedom Mortgage Company
State: OH

Complaint narrative:
Mortgage Origination : o I purchased my home in the summer of 2023, with XXXX XXXX XXXX as the original servicer. My first payment, as per XXXX XXXX XXXX documents I received, was due on XX/XX/year>. I made two payments in XXXX to cover both XXXX and XX/XX/year> payments. These payments, totaling {$2900.00} ( {$1400.00} each ), were sent via automatic withdrawal from my checking account to ensure timely payment despite my frequent work-related travel. 

Servicing Transfer : o In late 2023, I was notified that my loan had been sold to Freedom Mortgage. However, I was unaware of this transfer until I returned home from travel and received the notification letter. By that time, the two payments for XXXX and XXXX had already been sent to XXXX XXXX XXXX. My XXXX payment was then sent to Freedom Mortgage. 

Actions Taken : o I promptly contacted both XXXX XXXX XXXX and Freedom Mortgage within the 60-day servicing transfer grace period, as outlined under the Real Estate Settlement Procedures Act ( RESPA ). I was assured by both parties that the payments sent to XXXX XXXX XXXX would be transferred to Freedom Mortgage and that no penalties or late marks would affect my account. 
Current Issue : o Despite my timely payments, Freedom Mortgage incorrectly reported that I was behind on two payments to the credit bureaus. 
o XXXX XXXX XXXX returned one payment to me through XXXX XXXX  after many phone calls and after another round of phone calls, with both my bank and XXXX XXXX XXXX, I eventually received the second payment back into my account. 
o Freedom Mortgage applied subsequent payments I had made to them to earlier months, assessed late fees, and reported missed payments to the credit bureaus, despite my compliance with payment requirement and sending XXXX XXXX XXXX payments to Freedom once they had been refunded to me. 

Demand for Immediate Resolution o This issue is a direct result of the servicing transfer and the mishandling of payments between XXXX XXXX XXXX and Freedom Mortgagenot any failure on my part to make payments. Under RESPAs protections : Borrowers can not be penalized or reported as delinquent to credit bureaus for payments made to the previous servicer within 60 days of a servicing transfer. 
I contacted both parties and made every effort to resolve this within the 60-day window, and my payment history reflects that I have never missed a monthly payment. 

Conclusion This situation has caused unnecessary financial and emotional strain. My timely payments and proactive efforts to address this matter demonstrate my commitment to fulfilling my obligations. I expect Freedom Mortgage to take immediate action to correct this issue, restore my credit, and ensure this does not happen to other borrowers in the future.

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