Consumer complaint received 2025-10-28 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: NC

Complaint narrative:
On XX/XX/XXXX I had a 5 and 1/2 hour conversation over the phone with XXXX a representative from Freedom Mortgage company. The mortgage company claims due to a higher projection, at the beginning of XXXX, the account was {$600.00} short. The prior year they made the same claim, but it was a {$35.00} shortage. The mortgage has had three different mortgage servicers in 2 years. ( XX/XX/XXXXXXXX XXXX  ) According to RESPA document, XXXX XXXXXXXX was put in escrow according to CD and initial escrow sheet. However, XXXX the escrow was said to be {$35.00} short. XXXX, Freedom Mortgage claimed a {$600.00} shortage. Additionally, over XXXX XXXXXXXX was paid at closing for PMI. 

The mortgage companies ( all three ) appear to have untraceable calculations of escrow and numbers do not match statements. In addition, I pay my mortgage on the XXXX of each month for the next month. The mortgage companies would receive two payments each month, XXXX & XXXX XXXX of each month. XXXX 's mid-month payment was not allocated for the next year 's XXXX payment due, however they deduct PMI in XXXX and do not added full amount paid to escrow. So the monthly payment, for XXXX was short each year because the mortgage servicer did not apply mid-month payments to the next month due date. Paying early is supposed to be a benefit to reduce principle amount and interest charged/paid. These companies are not affording this transaction because they aren't applying payment to applicable coming monthly payment due. 

Although this may be a communication and calculated error, it appears to me that there's fraud, abuse, and predatory lending. They have imposed unfair and abusive terms which exploit lack of financial knowledge by the consumer and is unable to clearly reflect account transactions. They have used aggressive tactics to cause my mortgage to become a deficit, impact my credit, and cause higher prices for other companies, like home insurance or other services based on credit. Freedom Mortgage amended credit reporting to current, but the damage is done. Additionally, I believe this mortgage was issued under a vulnerable community criterion with hopes of default. I most often paid {$24.00}. XXXX XXXX  additional on my mortgage to apply to principle. This tactic eliminates my ability to added funds to principle and makes it hard on the consumer to handle responsibility. 

I am being exploited by the companies with their unfair and deceptive abusive mortgage loan practices and refusal to provide a comprehensive payment history ( with running totals reflected on statements ) from the beginning of the loan, escrow balance, to present day. At present they have me owing {$3100.00} overdue payment because they are tacking on fees, late payments, and curtailed monies paid. However, Freedom refuses to admit errors and have totally destroyed my account, payment schedule, and charging {$42.00} late fees. The last statement gave references an attempt to correct the account and apply payments correctly, but freedom mortgage is still incorrectly managing the account. Failure, by these companies to accurately post payment impact interest paid and principle amount each month. 

They refuse to correct or provide a concise running total spreadsheet of payments made, credits applied, and accurate escrow balance since conception. The account is a mess. Their projections was offset by ( my ) increasing deductible on home insurances. XXXX amount of insurance ( {$970.00} + {$790.00} ), XXXX ( {$970.00} + {$660.00} ) and year prior XXXX ( {$920.00} + {$470.00} ). The fake projection assumes increases, but actual numbers show NO {$600.00} increase necessary. It appears their false projections are in cohoots with insurance agent, or companies. 

Escrow balance XXXX XXXX ( {$1600.00} IRS XXXX ) RESPA CUSHION {$760.00} is claimed starting escrow balance. However, XXXX XXXX showed a balance of {$910.00}, and XXXX {$710.00} and Freedom Mortgage claimed these numbers include mid-month payments in total reported to IRS, but MY basic math XXXX spreadsheet ( SENT TO THE AND State of Noth Carolina DOJ ) showing all escrow payments with running totals indicates XX/XX/XXXX has more than enough in escrow ( {$1500.00} ) ( second column on spreadsheet ending balance using Freedom Mortgage 's figure leaves a balance of {$750.00}, XX/XX/XXXX having paid insurance and taxes. 

The mortgage servicing companies have inaccurate accounting procedures, and this is why THEY are short ON THEIR BOOKS, but my payments were enough and accurate. My escrow was depleted by the selling of the mortgage to two other companies in less than three years ( XXXX at XXXX, XXXX XX/XX/XXXX, Freedom Mortgage XX/XX/XXXX ) I hope there's no conflict of interest and your company can handle my case. I look forward to hearing from someone soon. 

Thank you.

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