Consumer complaint received 2025-12-26 00:00:00
Product: Mortgage — Conventional home 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: FL

Complaint narrative:
I submitted a loss mitigation application to my prior servicer in XX/XX/XXXX due to financial hardship. As of XX/XX/XXXX, my loan was actively with underwriting for loss mitigation review, and the prior servicer had paused adverse credit reporting while the review was pending. 

My loan was transferred to Freedom Mortgage effective XX/XX/XXXX, while the loss mitigation review was still in progress. Under federal servicing requirements applicable to servicing transfers, the pending loss mitigation review and associated documentation should have carried forward without interruption. 

Throughout XX/XX/XXXX, I contacted Freedom Mortgage multiple times to confirm the status of my loss mitigation application. On each occasion, I was advised that Freedom Mortgage had all required documentation and that no further action was needed from me at that time. I relied on these representations and did not receive any notice that additional action was required. 

Near the end of XX/XX/XXXX, Freedom Mortgage reversed course and stated that, under its internal guidelines, because it had not completed its own review within 30 days following the transfer, I was required to submit a new loss mitigation application. This requirement was communicated despite the fact that the application had already been submitted prior to transfer, was under active underwriting review at the time of transfer, and I had repeatedly been assured that my file was complete. I questioned this requirement, as the delay was caused solely by the servicing transfer and Freedom Mortgages internal processing timelines, not by borrower noncooperation. 

In XX/XX/XXXX, I complied with Freedom Mortgages request and submitted a new loss mitigation application. Despite my cooperation and resubmission, Freedom Mortgage did not complete review until late XX/XX/XXXX. 

Freedom Mortgage ultimately approved a forbearance only for XX/XX/XXXX through XX/XX/XXXX, excluding XXXX through XX/XX/XXXX, even though those months were impacted by an active loss mitigation review, repeated servicer assurances that my file was complete, and subsequent servicer-caused delays. 

Freedom Mortgage representatives have stated that they can not retroactively apply forbearance months and have repeatedly advised that I remain responsible for XXXX through XX/XX/XXXX, while also suggesting that I may continue making payments if I choose. This position does not address the underlying servicing-transfer failure or the fact that these months were affected by a pending loss mitigation review and servicer-caused delay. 

If my loan had not transferred, the loss mitigation process would have continued uninterrupted and this issue would have been resolved as intended. Instead, Freedom Mortgages failure to properly carry forward the pending review, combined with its reliance on internal timing guidelines after the transfer, has left XXXX through XX/XX/XXXX unresolved and at risk of being improperly treated as delinquent. 

Freedom Mortgage failed to properly maintain continuity of a pending loss mitigation review during a servicing transfer, provided inconsistent and misleading information regarding the completeness of my application, and required resubmission of an application based on internal review timing rather than borrower noncooperation. 

XXXX through XX/XX/XXXX were affected by an active loss mitigation underwriting process and servicer transfer delays and should not be treated as delinquent, immediately payable, or subject to adverse credit reporting due to Freedom Mortgages internal servicing errors.

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