Consumer complaint received 2025-06-10 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Freedom Mortgage Company
State: MI

Complaint narrative:
To Whom It May Concern, This formal complaint is submitted regarding the conduct of Freedom Mortgage Corporation and XXXX XXXX XXXX concerning the mismanagement of my mortgage escrow account, mishandling of a property loss draft claim, and improper insurance coverage administration. These failures have caused me extensive financial hardship, emotional distress, and nearly resulted in the loss of my home. 

SUMMARY OF COMPLAINT I am filing this complaint to report Freedom Mortgages and XXXX XXXX repeated violations of federal and state law, including RESPA, the Fair Credit Reporting Act ( FCRA ), and the XXXX XXXX XXXX. I am seeking urgent relief and enforcement from the CFPB for the following : Mishandling of insurance disbursements from a major home damage claim beginning in XX/XX/XXXX. 

Failure to provide timely inspections and fund releases, leaving me displaced for over a year. 

Failure to acknowledge or respond to Qualified Written Requests ( QWRs ) regarding escrow discrepancies. 

Improper credit reporting due to internal payment errors by Freedom Mortgage. 

Mismanagement and non-disclosure of dual insurance policies for over a year. 

DETAILED TIMELINE OF EVENTS XX/XX/XXXX : A pipe burst rendered my home uninhabitable. I immediately filed a claim with XXXX XXXX. 

XXXX XXXX : I lived in extended stay hotels and incurred over {$26000.00} in unreimbursed Additional Living Expenses ( ALE ) due to Freedom Mortgages delays in loss draft inspections and fund disbursements. 

XX/XX/XXXX XX/XX/XXXX : I submitted repeated food reimbursement receipts and doctors letters to XXXX. They failed to respond for months and only issued a partial denial in XX/XX/XXXX. 

XX/XX/XXXX : XXXX ceased ALE disbursements, blaming Freedom Mortgage for not conducting inspections or releasing funds. 

XX/XX/XXXX XX/XX/XXXX : Despite multiple requests via XXXX portal and direct contact, Freedom Mortgage failed to conduct timely inspections or provide required approvals. 

XX/XX/XXXX : I submitted a XXXX  to Freedom Mortgage to dispute escrow errors and request documentation. No acknowledgment or response was provided. 

XX/XX/XXXX : I discovered that Freedom Mortgage had been charging me for two insurance policies since XX/XX/XXXX. I had previously provided updated insurance documentation, but they never canceled the old policy. I had to notify them again. 

XX/XX/XXXX : Freedom Mortgage issued a refund of {$4500.00} related to duplicate insurance premiums. 

XX/XX/XXXX : They failed to process my insurance disbursement on time, lying about mailing the check. The shipping label wasnt even created until XX/XX/XXXX, despite claims that the check was sent on the XXXX. 

XX/XX/XXXX : I was told my XX/XX/XXXX mortgage payment had been canceled. I did not authorize this cancellation. I was told it would be escalated. It was not. 

XX/XX/XXXX : I received a delinquency notice and saw my payment reported 30 days late to XXXX, risking my real estate refinancing. I spoke with multiple agents who gave conflicting stories and failed to initiate a proper dispute resolution process. 

VIOLATIONS OF LAW Freedom Mortgage has violated : 12 U.S.C. 2605 ( e ) ( RESPA ) : Failure to acknowledge and respond to QWRs within 5 and 30 business days respectively.

15 U.S.C. 1681s-2 ( a ) ( FCRA ) : Reporting inaccurate and unauthorized late payments to credit bureaus.

Consumer Financial Protection Act, 12 U.S.C. 5531 ( UDAAP ) : Unfair and deceptive mortgage servicing practices. 

XXXX XXXX has violated : XXXX  XXXX & XXXX : Failure to act in good faith and timely process claims. 

XXXX  XXXX : Deceptive and misleading practices regarding ALE denial and dual policy mismanagement. 

REQUESTED RELIEF I am requesting the following corrective actions : Full reimbursement of {$57000.00} ( detailed summary submitted separately, including ALE, utilities, laundry, mileage, and recoverable depreciation ). 

Immediate removal of the XX/XX/XXXX late payment from all credit reports and written correction sent to all major bureaus. 

Adjustment of my mortgage account to reflect the corrected escrow balance and refund all overcharges. 

Written acknowledgment from Freedom Mortgage that the dual insurance billing and disbursement delays were their responsibility. 

Enforcement of penalties under RESPA and FCRA, with the maximum allowed civil fines due to repeated and willful violations.

CFPB-mandated correction of Freedom Mortgages and XXXX  internal practices to prevent further harm to other consumers. 

SUPPORTING DOCUMENTATION Attached to this complaint are : Escrow statements for XXXX and XXXX. 

Freedom Mortgages internal ledger. 

Copies of communications regarding the XXXX. 

ALE denial letter from XXXX. 

Proof of payments, receipts, and correspondence with all parties. 

I am available to provide further testimony or documentation upon request.

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