Consumer complaint received 2025-02-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
In XX/XX/year>, Freedom Mortgage placed my mortgage into forbearance without my knowledge or consent. As a co-borrower, I was never notified or consulted regarding this decision. Instead, Freedom Mortgage communicated only with my mother, who was misled by their representatives into believing that the forbearance would not negatively impact our credit. 

The forbearance plan paused payments for XXXX, XXXX, and XXXX ; however, Freedom Mortgage failed to notify my mother that the credit reporting protections would not apply. When she directly asked the agent about the impact on credit reporting, the agent explicitly assured her that during this three-month period, no negative reports would be made to the credit bureaus and that our account would remain in good standing. 

In XX/XX/year>, I discovered that Freedom Mortgage had placed a XXXX delinquency on my credit report, causing my credit score to drop by more than XXXX points. This was the first time I became aware of the forbearance and its consequences. In an effort to prevent further damage, I immediately paid the full balance on XX/XX/year>, bringing the account current, and requested a resolution from them. 

Freedom Mortgages agent provided false information and misrepresented the terms of the forbearance while also failing to obtain my consent as a co-borrower before placing my loan in forbearance. 

Hurricane Beryl Impact and Hardship In XX/XX/year>, Hurricane Beryl struck our community, leading to a federal disaster declaration in our area. My mothers home was directly impacted, and she was already facing financial hardship after losing her job earlier in the year. She has since regained stable employment, but this financial strain was a key factor in her decision to seek assistance from Freedom Mortgage. 

Rather than providing clear and honest guidance, Freedom Mortgage misrepresented the terms of the forbearance and is now penalizing us for their mistakes. 

Freedom Mortgages Refusal to Investigate Agent Misconduct Since discovering the issue in XX/XX/year>, I have repeatedly asked Freedom Mortgage to investigate the false information provided by their agent, who assured my mother that the forbearance would not harm our credit. 

I initially reached out to them in XXXX, then XXXX, and now in XXXX. Freedom Mortgage has refused to review these communications and is instead upholding the XXXX late payment, which is severely damaging my ability to refinance or remove myself from the loan. 

This is a direct violation of the Fair Credit Reporting Act ( FCRA ), which requires that credit furnishers report accurate and non-misleading information. In this case, the reported delinquency is misleading because : I was never notified that a forbearance plan was active, despite being a co-borrower on the loan. 
Freedom Mortgage representatives misrepresented the credit impact of the forbearance. 
Freedom Mortgage has refused to investigate the agents misrepresentation. 
I immediately paid the full amount upon discovering the issue on XX/XX/year>. 
Their reporting is misleading and causing severe financial harm. 

Conclusion Despite misleading us, failing to properly notify me, and refusing to investigate their agents remarks, Freedom Mortgage is unfairly punishing us by keeping a XXXX late payment on my credit report. This is causing significant financial harm, preventing me from refinancing or removing myself from the loan. 

I request that the CFPB intervene to ensure that Freedom Mortgage complies with FCRA guidelines and removes the inaccurate and misleading XXXX delinquency from my credit report. 

Thank you for your time and assistance in resolving this matter.

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