Consumer complaint received 2026-05-29 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Freedom Mortgage Company
State: MO

Complaint narrative:
CONSUMER FINANCIAL PROTECTION BUREAU COMPLAINT Company : Freedom Mortgage Corporation XXXX XXXX XXXX XXXX XXXX Department ) Issue : Failure to Account for Insurance Claim Proceeds I am filing a complaint regarding insurance claim proceeds associated with my mortgage loan that were received by the mortgage servicer and/or its loss draft XXXX but whose current location can not be identified by either company. XXXX : On XX/XX/year>, I mailed an insurance claim check in the amount of approximately {$9600.00} to the address provided by the mortgage servicers loss draft department. The check was received on XX/XX/year>. At that time, their current online portal ( my XXXX XXXX ) indicated that the funds had been placed into a restricted escrow account. Subsequently, Freedom Mortgage and its loss draft XXXX underwent a system conversion and office transition. During this transition, I was required to manually re-enter all claim information into the new system despite having already submitted the claim previously. The repair work associated with the insurance claim has been completed. A required inspection has already been conducted and passed. As of XX/XX/year>, neither Freedom Mortgage nor XXXX can identify the current location of my funds. Representatives have informed me that : The funds may be located in a restricted escrow account in a legacy system that is no longer visible to them ; The original check may be in transit between offices ; The funds may not yet have been transferred into the new system ; They can not determine which explanation is correct ; They can not provide a timeframe for resolution ; They can not confirm the exact account in which the funds are being held. In other words, the companies acknowledge receipt of the check but can not identify where the money currently resides. My concern is not merely a delay in releasing insurance proceeds. My concern is that the servicer and its vendor are unable to accurately account for borrower funds entrusted to them. Mortgage servicers are required to maintain policies and procedures reasonably designed to provide accurate information and facilitate proper servicing of mortgage loans. See 12 C.F.R. 1024.38. Servicers are also expected to maintain accurate records and respond appropriately to borrower inquiries regarding loan servicing. I am requesting that Freedom Mortgage and/or XXXX provide : XXXX. Written confirmation that the insurance check was received and negotiated. XXXX. Written confirmation identifying the exact account in which the funds are currently held. XXXX. The date on which the funds were deposited. XXXX. The current balance of those funds. XXXX. A complete accounting of all transactions involving the insurance proceeds. XXXX. A written explanation for why neither company can presently identify the location of the funds. XXXX. A specific timeline for resolution and release of any funds for which all conditions have already been satisfied. This issue has persisted for weeks after receipt of the check, despite completion of repairs and successful inspection. I am requesting immediate investigation and written response. Thank you for your attention to 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