Consumer complaint received 2025-01-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: Freedom Mortgage Company
State: GA

Complaint narrative:
Freedom mortgage incorrectly applied someone else 's mortgage payment by phone to my account in XXXX, XXXX, XXXX, and XXXX of XXXX. Upon seeing a XXXX due balance and a payment nearly four times my monthly payment, I called to say there had been an error. Mortgage company said absolutely not. It was a pay by phone payment made to my account. I asked what happened if there was a way to make my payment anyway and have it applied to the payment itself as the only option I was being given online was to pay additional principal.. I was told no, it could not go toward a payment that had already been made or future payments for the coming month. But I was welcome to pay more on various parts of my mortgage. I asked if the incorrect payment was backed out, would my extra payment be able to change categories later and be applied as the payment. No, but if I was that concerned about it, they advised that I keep the money in savings and if it turns out the massive overpayment that came from some mystery account was an error, theyd taken enough notes that Id be able to call in and correct it. 

This went on for weeks. I checked the account daily and always saw XXXX due. Every statement I received between showed these massive payments I had not made applied to my account and XXXX  due. I kept putting the money in savings and on XX/XX/XXXX logged in to see no change. XX/XX/XXXX, I received multiple messages stating my account was delinquent and action would be taken. That was a Saturday at XXXX XXXX, so I spent the whole weekend mildly worried. But only mildly because I had documentation, theyd taken notes, and I just figured the messages were automated and the payments had been corrected finally and there would be no issue with me calling in to pay. 

I did call in and pay first thing Monday morning, but they argued against waiving the late fees because I didnt pay my mortgage. Despite all my screen shots and paper statements showing a XXXX balance on every day until the XXXX, the payment reversal dates corresponded with the date of the payment. So even though the payments were backed out on XX/XX/XXXX, the screen changed to show a payment backed out, XXXX XXXX, and XXXX XXXX, and the date of the XXXX prepayment with fees applied in what would be the usual intervals ( day XXXX overdue ) along the way. 

It took four hours of me basically losing my mind before they finally reviewed all the notes and saw, oh, you did try to fix this. We wouldnt let you. Yes, well waive the fee as a courtesy and nothing will be reported to your credit and no, it wont look like you were late in our system. 

It still looks like I was late in their system. And they did report it to credit, my credit score dropped over XXXX points, my cards reduced their available credit, XXXX  with my interest rates, and my escrow account is showing a massive shortage because of the back and forth with the payments, and despite diligently building up equity with on time and sometimes extra payments and upgrades to my home, I can not access my equity for 12 months due to federal guidelines that prevent borrowers who have missed/delayed a mortgage payment within the last year. 

Ive spent the last three days on the phone with them trying to get them to correct my credit report and filed a dispute everywhere I can to fix the damage theyve done as quickly as possible because this is having a major financial impact on my life, and I keep getting stuck in this loop of being on hold for hours, going through 2-3 people who are absolutely convinced the credit report Im looking at is incorrect because they dont see where its been reported, and then finally getting to someone reasonable who fills out some kind of investigation paperwork and says theyll call tomorrow and send me a letter by end of business day stating the error to send to the lenders Im trying to work with. The letter I get ends up saying Our records indicate the XXXX XXXX monthly payment was paid effective XX/XX/2024, which is not within the month it was due resulting in a 30-day delinquency. Contractual obligation is to make full monthly payments on the first of each month. 
Enclosed is a copy of your payment history for your review and records. ( Not the only month that was reported delinquent for the record ) and the attached copy shows the falsified dates of the payments being backed out on the first of each month. 

Its insane that a complete stranger was able to call and talk to a customer sales rep and somehow end up with access to my mortgage. They shouldnt have been able to pull up my account with a different party on the line much less make or reverse payments on their behalf. Its even crazier that they can re-date confirmed transactions on a whim. I can understand a customer rep accidentally pulling up the wrong account and making a payment, but to make the same error repeatedly over and over period of months?! And then to just be like our bad, let me fix that for you without notifying the borrower that theres been unauthorized activity on their account. In fact, lets back date this so we can turn a profit?! I have statements that say the mortgage payment is paid. They physically had the entire amount of the mortgage ( at 4x the amount due per month! ) for all but a single weekend day, and zero business days. How was I reported for being 30 days + late when they didnt go 30 days without the payment? And how come the second I called in with such an insane series of security lapses and errors on their part, was it not immediately addressed?

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