Consumer complaint received 2026-04-07 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Freedom Mortgage Company
State: WA

Complaint narrative:
Freedom Mortgage Corporation serviced our VA-guaranteed mortgage for three years during which they blocked every available relief pathway, then foreclosed. The VA Secretary now holds title to our property following a XX/XX/XXXX trustee sale. We are currently in pre-eviction with unlawful detainer filing expected at any time.My husband is a XXXX XXXX combat veteran XXXX XXXX deployments, XXXX, XXXX XXXX, XXXX XXXX XXXX.We were not asking for a handout. We are asking to pay our mortgage. We were not allowed to. We found out when someone showed up at our door with the notice.Nine documented regulatory violations : Rate cap violation : Freedom Mortgage offered a modification at 7.25 % on a 2.25 % VA loan. VA 's own handbook ( M26-4 Chapter 5 ) caps modifications at existing rate plus 1 % which equals 3.25 % maximum. That is a 400 basis point violation, approximately {$290000.00} in excess cost over the life of the loan. Modification dated XX/XX/XXXX, XXXX XXXX. The VA confirmed the 2.25 % existing rate in its XX/XX/XXXX response to XXXX XXXX. XXXX failure : Freedom Mortgage sent a letter dated XX/XX/XXXX explicitly naming the VA Servicing Purchase Program and promising evaluation. Nineteen days later, the XX/XX/XXXX decision letter marked every single loss mitigation option as Not Reviewed. RESPA Notice of Error and Request for Information non-response : Filed XX/XX/XXXX per XXXX XXXX XXXX and XXXX. Freedom Mortgage never acknowledged receipt and never responded within the required timeframes. Dual tracking : Freedom Mortgage continued foreclosure proceedings while loss mitigation applications were pending, in violation of 12 CFR 1024.41. False credit reporting and CARES Act violation : Freedom Mortgage backdated negative credit reporting into the CARES Act protected forbearance window, in violation of CARES Act Section 4022 and FCRA Section 623. Unauthorized foreclosure under 38 CFR 36.4319 : Freedom Mortgage referred the loan to foreclosure without completing the mandatory loss mitigation sequence. Escrow overcharges : The XXXX veteran property tax exemption was approved by XXXX XXXX in XX/XX/XXXX. Freedom Mortgage was provided formal written notice with county documentation on XX/XX/XXXX. Freedom Mortgage did not correct the escrow calculation for over XXXX months, inflating the delinquency total. Failed loss mitigation and XXXX non-submission : Freedom Mortgage never submitted the loss mitigation file to VA 's XXXX compliance tracking system. VA Loan Guaranty supervisor XXXX XXXX confirmed on a recorded call that there has been no XXXX activity on this loan since XXXX. No compliance review, no infraction logging, and no rate cap check ever occurred. VA forbearance contract breach : The VA XXXX XXXX XXXX program was sunset mid-forbearance without individual notice to borrowers or a substitute program. Freedom Mortgage Corporation has $ XXXX in cumulative federal penalties across XXXX enforcement actions. Active oversight includes the House Veterans Affairs Committee which is investigating, the VA Office of Inspector General with an open investigation Ref XXXX, XXXX XXXX 's XXXX with a formal inquiry through XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX the VA level, Wounded Warrior Project whose VP contacted the VA directly , and the Washington State Attorney General. XXXX published an investigation on XX/XX/XXXX. More than XXXX veteran families have already lost their homes since the VA ended XXXX in XX/XX/XXXX. Over XXXX VA borrowers are currently delinquent. More than XXXX families total impacted. Congress passed H.R. 1815 unanimously, signed XX/XX/XXXX, requiring VA to establish a partial claim program. Still not implemented almost a year later.

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