Consumer complaint received 2026-06-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: FL

Complaint narrative:
Use this version. It avoids your name, address, account number, and policy number. My mortgage servicer failed to properly handle an escrowed flood insurance premium that should have been paid from my escrow account. In XX/XX/year>, the flood insurance premium became due. The premium amount was {$430.00}. Because the escrow disbursement was not handled correctly or timely, I had to pay the premium out of pocket on or around XX/XX/year> to avoid a lapse or other insurance issue, even though the premium should have been paid through escrow. Before the issue was resolved, I made multiple phone calls to the mortgage servicer and contacted the insurance provider directly. The insurance provider advised that it had not received certain correspondence/checklist information from the servicer and that it had previously provided requested information to the servicer. There were also issues involving mortgagee information, PO Box/billing details, and payment handling that had to be corrected or clarified. On XX/XX/year>, I escalated the matter in writing and provided the full flood insurance policy package and amended declarations page again for review. I asked the servicer to confirm whether the documents satisfied its private flood insurance requirements, whether the mortgagee information issue had been resolved, whether anything was still missing, and whether anything was preventing escrow disbursement. On XX/XX/year>, the servicer confirmed in writing that the full policy package had been reviewed, that the required dwelling flood coverage was sufficient, that updated evidence of insurance with the correct mortgagee clause had been obtained, that nothing further was needed, and that no additional actions were required for payment disbursement. The servicer also confirmed that a disbursement of {$430.00} was paid out of escrow on XX/XX/year> and that a check was issued on XX/XX/year>. After the issue was resolved, I requested a written explanation of what caused the escrowed flood insurance payment not to be handled correctly before I had to intervene. I also requested clarification about who was responsible for maintaining or communicating updated mortgagee, billing, and payment information ; why a flood checklist was initially treated as required ; why the checklist issue appeared to be resolved only after escalation ; what corrective action had been taken to prevent recurrence ; whether the issue was documented on my account ; and whether the servicer acknowledged that the escrow process did not function as expected. On XX/XX/year>, the servicer denied my request for a goodwill or service recovery credit. The servicer stated that no servicing error was identified and later stated that its decision remained unchanged and that it would no longer respond to the matter. I am asking for a substantive written explanation of the escrow/payment breakdown, confirmation of corrective action to prevent recurrence at the next renewal, documentation that the issue has been noted on my account, and appropriate service recovery for the unnecessary borrower intervention, out-of-pocket payment, multiple calls, and escalation required to resolve an escrow matter that should have been handled automatically.

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