Consumer complaint received 2025-07-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: OK

Complaint narrative:
On XX/XX/XXXX, our home was damaged by a severe storm with high winds and hail. Our insurance company, XXXX XXXX, settled our claim for a total of {$27000.00}. We received the first check from XXXX XXXX written out to us, XXXX and XXXX XXXX, as well as our mortgage company, Freedom Mortgage on approximately XX/XX/XXXX. We mailed the check to Freedom Mortgage for them to endorse and return the funds to us. With no correspondence from Freedom Mortgage, we received a check from them in the amount of {$3700.00}. I called to ask why we did not receive the full amount. I was told at the time of the damage to our home ; our mortgage loan was in " delinquency ''. Therefore, they stated, they could only release portions of the settlement money incrementally, as the repairs to our home had to be inspected by a third party ( separate from our builder ), to make sure the damages were repaired. They told me this was because our loan was in " delinquency '' at the time of damage and they had to keep the settlements in our escrow account to be release on a little at a time as repairs were completed. On XX/XX/XXXX, I called to talk with someone at Freedom Mortgage to let them know I checked our bank records and we had made every payment on our mortgage for the past year ( at that time I had proof of payments - cancelled checks and proof from payments made through the Freedom Mortgage app- showing we never missed a payment from XX/XX/XXXX through XX/XX/XXXX. The person I spoke with told me to send a letter with the attached proof of payments to : XXXX. I was told I would get a response within a few business days. I never received a response. Here is the email I sent to the above-mentioned address : Good evening, We were told that our account was delinquent when our home was damaged by a tornado in XXXX, XXXX. This resulted in the insurance check we sent for {$14000.00} to be deposited into our XXXX account. We were told that we could only access small increments of that money at a time while repairs to our home our being done. 

I have attached copies of each months mortgage payment via check or automatic debit from our checking account at XXXX Bank. We have not been nor are we delinquent in our mortgage payments. 

I am requesting the full XXXX be released to us so that we can move forward in a timely manner in paying XXXX XXXX XXXX XXXX, our builder, for the much needed repairs on our home at XXXXXXXX XXXX XXXX XXXX, XXXX, OK XXXX You can reach me on my personal cell phone if you have any questions : XXXX. 

We appreciate your attention and help in this important matter. 

XXXX and XXXX XXXX I never heard back from anyone. My builder and his associate, tried to contact them, with my permission, and they were told the same thing. When they told him I had emailed them proof of all mortgage payments being made in the past year, they told them to have me check my " online portal '' as that is where I would find any response or change regarding the release of the full settlement amount. That never happened. Weeks go by. I called several times and was told the same thing : check my online portal. I continued to check the online portal when I saw they were mailing us another check on XX/XX/XXXX in the amount of XXXX. I tried to call to ask again, why they would not release the full insurance check amount when I had provided proof we were not in delinquency. Again, I was transferred back and forth to different people who could not or would not answer my question. On Finally, on XX/XX/XXXX, I called and was determined to speak with someone who would give me a clear answer as to making the correction regarding the " delinquency '' allegations and subsequent withholding of our insurance claim money. I was on the phone over an hour and half and was transferred repeatedly back and forth from " customer service '' to the " loss draft department ''. No one would answer my questions. At that point, we decided to hire an attorney, XXXX XXXX XXXX, to help us. XXXX XXXX, my husband XXXX, and I contacted Freedom Mortgage today on a speaker phone call. XXXX XXXX wanted the mailing address to the legal department as he planned on mailing a letter representing us, demanding release of the insurance money left over and that the once we receive the 2nd check for the remainder of the insurance money, they endorse it and send to us immediately in full. XXXX XXXX and we got the same treatment as I received on Monday, XX/XX/XXXX. The persons who answered could not give us that legal department 's address and began to transfer us back and forth between customer service and loss draft. XXXX XXXX decided he would find out where to send the letter on his own and said if Freedom Mortgage does not comply with his demand, he would take legal action against them on our behalf.

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