Consumer complaint received 2026-02-15 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: NV

Complaint narrative:
I am writing to formally escalate a serious issue regarding the handling of our insurance reconstruction funds related to our condo loss claim with Freedom Mortgage. 

Freedom Mortgage has received approximately {$60000.00} in reconstruction insurance proceeds two months ago. Under their standard loss draft procedure, an initial disbursement of approximately {$40000.00} is to be released to allow reconstruction to begin. 

My husband and I have had over 25 calls and emails with Freedom Mortgage to learn when this initial disbursement will be made based on the required documents that were uploaded to their portal ( uploaded 2 months ago, also ). Recently we learned that the initial disbursement has been ( improperly ) reduced to approximately {$15000.00} based on the incorrect assumption that prior payments were issued to us. 

This is factually inaccurate. 

The payments in question were for water mitigation, mold remediation, lead mitigation and emergency services and were paid directly by the insurance carrier and/or disbursed by our public adjuster directly to vendors. Those funds were never issued to us, never endorsed by us, and never processed through your institution. 

Despite being informed of this distinction by both XXXX, our homeowner 's insurance company, and XXXX XXXX, our retained public adjuster, Freedom Mortgage 's loss processor continues to treat those third-party vendor payments as though they were borrower-controlled reconstruction funds. As a result, Freedom Mortgage is improperly reducing the reconstruction funds available to restore my home. 

The emergency abatement costs are separate and apart from the reconstruction costs. I have uploaded two separate reconstruction quotes to the Freedom Mortgage portal that supports the expense required to get my home to a livable state. The expenses that have been paid to vendors, which I have not ever received, were used to mitigate the vast amounts of water damage in my condo - sheetrock was crumbling, the floors were literal sponges, my downstairs neighbors two floors down were being impacted, mold was forming, my condo was a hazmat scene and needed emergency intervention. The funds used to pay those vendors were used to remove hazardous materials ( lead ) sheetrock and the floors. Our condo is sitting leveled down to the metal studs and concrete floors. We had severe water damage. ( photos provided ) Stage 1 - Mitigation- this was paid directly by our public adjuster and included cleanup of the water, mold, lead abatement, etc Stage 2 - Reconstruction- this is a separate process that needs to be paid out of the funds Freedom Mortgage is holding in escrow We have explained this several times, as have our insurance company and our public adjuster. 

This delay is materially impacting our ability to complete reconstruction and return our home to livable condition. We can not live in our condo and have not been able to do so since the damage was discovered on XX/XX/XXXX. 

Freedom Mortgage 's Loss Draft representative we spoke with on XX/XX/XXXX said Freedom Mortgage cares more about our home than XXXX, implying they are looking out for our best interest more than anyone else. I have repeatedly requested Freedom Mortgage show us that by issuing us the standard initial {$40000.00} draw so we can begin properly funding this construction project in a way that is not financially strapping my family. 

Freedom Mortgage has been in control of our reconstruction funds for 2 months. We now understand that our case is under review based on their Loss Draft Processor 's erroneous request to change the initial payment from {$40000.00} to {$15000.00} because they are wrongly applying prior payments made for water and lead abatement toward reconstruction costs. I am worried they will not review my case in its accurate totality. 

Freedom Mortgage is putting financial strain on my family by holding XXXX the funds that have been issued to cover the cost of reconstruction to my condo. Funds that have been made available through an insurance policy that I pay for. If they were to reduce our reconstruction budget by {$25000.00} ( I am basing this on their purported reduction of our initial draw from {$40000.00} to {$15000.00} ) I would not be able to move back into my condo - a home that I own together with Freedom Mortgage. The reason why is because that would not be enough to cover the cost of reconstruction. Also, what will Freedom Mortgage do with the {$25000.00} they are seemingly withholding? Will they keep it for themselves? I can not find any stipulation or clause in any contract that states they are allowed to keep these funds. 

Our reconstruction project is starting on Monday, XX/XX/XXXX. We were going to lose the ability to work with our very carefully selected vendor ( they have been waiting patiently for nearly 2 months ) if we did not get them on this project now. In addition, our primary residence has been uninhabitable since XX/XX/XXXX. 

We scheduled Freedom Mortgage 's inspector to come by last week on either XX/XX/XXXX or XX/XX/XXXX but we never received confirmation from him that he actually went there. We have called him several times and he has not returned our calls. It concerns me that Freedom Mortgage will use this as another reason to add a bottleneck to this process.

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