Consumer complaint received 2025-10-22 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Freedom Mortgage Company
State: CA

Complaint narrative:
I am filing an urgent complaint against Freedom Mortgage for multiple severe legal violations, including systematic payment theft, credit reporting fraud, and illegal collection activities, all while lacking proven legal standing. 

LEGAL VIOLATIONS & SUPPORTING AUTHORITIES : 1. COLLECTION & FORECLOSURE THREATS WITHOUT LEGAL STANDING Allegation : Freedom Mortgage collected payments from XX/XX/XXXX to XX/XX/XXXX without a recorded interest and now threatens foreclosure. 

Legal Support : o California Civil Code 2932.5 : " A power of sale can only be exercised where the assignment of the mortgage is recorded. '' Freedom Mortgage 's power of sale was unenforceable for XXXX years. 
o XXXX XXXX XXXX XXXX XXXX  ( XXXX ) XXXX XXXX XXXX : The California Supreme Court held a borrower has standing to challenge a foreclosure where the entity initiating it never received a valid assignment of the debt. Freedom Mortgage 's delayed, post-complaint recording is suspect and does not prove they held the note at the time of collection. 
o 12 U.S.C. 2605 ( k ) ( RESPA ) : Prohibits a servicer from failing to take timely action to correct and resubmit inaccurate information to a consumer reporting agency after receiving a Notice of Error. 

XXXX. FABRICATED ACCOUNT HISTORY & FALSE CREDIT REPORTING Allegation : Freedom Mortgage falsely reported a " deferment '' for XX/XX/XXXX that never existed. 

Legal Support : o Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( a ) ( 1 ) : Prohibits furnishing information to credit bureaus that the furnisher knows or has reasonable cause to believe is inaccurate. The false deferment is a per se violation. 
o FCRA, 15 U.S.C. 1681s-2 ( b ) : Upon receiving a dispute ( from a CRA or directly ), a furnisher must conduct a reasonable investigation. XXXX XXXX 's admission proves the inaccuracy, yet it remains, showing a failure to investigate and correct. 
o Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX : Clarifies that furnishers must have written policies to ensure the accuracy of information reported, including the correct account status and payment history. 

XXXX. SYSTEMATIC PAYMENT THEFT & ACCOUNTING FRAUD Allegation : Freedom Mortgage engaged in a complex scheme of fraudulent transactions to reverse and hide a {$2200.00} payment, manufacturing a false delinquency. 

Legal Support : o RESPA, 12 U.S.C. 2605 ( e ) ( 1 ) ( C ) : Requires a servicer to provide a " full and accurate accounting '' upon XXXX. The fraudulent transaction history is the antithesis of this requirement. 
o RESPA, 12 U.S.C. 2605 ( f ) : Creates a private right of action for damages resulting from a servicer 's failure to comply with its obligations. 
o California Business & Professions Code 17200 ( UCL ) : Prohibits " unlawful, unfair, or fraudulent '' business acts. Fabricating transactions to steal payments is a clear violation of all three prongs. 
o Conversion ( California Common Law ) : The intentional and unauthorized taking of another 's property ( the {$2200.00} payment ) for their own use. 

XXXX. ILLEGAL RETALIATION & FAILURE TO RESPOND TO QWR Allegation : After receiving my Qualified Written Request ( QWR ) and evidence of fraud, Freedom Mortgage retaliated with foreclosure threats and failed to provide a substantive response. 

Legal Support : o RESPA, 12 U.S.C. 2605 ( e ) ( 1 ) & ( 2 ) : Mandates a servicer to provide a written acknowledgment within 5 days and a substantive response to a QWR within 30 business days. Their failure is a strict liability violation. 
o RESPA, 12 U.S.C. 2605 ( e ) ( 3 ) : Explicitly prohibits initiating or threatening foreclosure during the 60-day period after receiving a QWR. Their foreclosure threats are a direct violation.

o California Civil Code 2924.17 ( a ) : Requires a mortgage servicer to have " reviewed competent and reliable evidence '' to substantiate the borrower 's default before recording a notice of default. Their admitted faulty audit and fraudulent payment history prove they lack this evidence. 

Detailed Description : My mortgage was originally with XXXX XXXX XXXX. Freedom Mortgage began servicing the loan in XX/XX/XXXX and has collected payments from me ever since. However, public records prove they did not legally record their interest in my property with the XXXX XXXX XXXX until XX/XX/XXXX. This means Freedom Mortgage collected over 30 monthly payments from me without the recorded legal authority to do so. When I formally questioned their standing and requested proof of ownership, I discovered a pattern of systemic data fabrication and fraud. 

Key Evidence of Fabricated Data : A false " deferment '' was reported for XX/XX/XXXX, which I never requested or received. 
Their own supervisor confirmed this was an error and my account should reflect a payment. 
This proves their internal records are unreliable and they are reporting known inaccuracies to credit bureaus. 

The fraud escalated in XX/XX/XXXX when I made payments totaling {$2200.00}. Freedom Mortgage 's own payment history proves a deliberate scheme to hide these funds through over XXXX fraudulent, cancelling transactions, resulting in {$0.00} being applied to my loan. 

When I called to dispute all of this, their XXXX admitted their accounting was flawed and an audit was underway. Despite these admissions, Freedom Mortgage then sent me a letter threatening to refer my loan to foreclosure based on this manufactured default.

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