Consumer complaint received 2024-04-23 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Freedom Mortgage Company
State: MD

Complaint narrative:
The issue began in XXXXXXXX XXXX XXXXXXXX. We missed a letter in XX/XX/XXXX stating an increase was taking place beginning on XX/XX/XXXX. Therefore, when we sent our payment due XXXX first, on XX/XX/XXXX, it was shy of the new corrected amount by {$130.00}. Since it was the incorrect amount, our typical payment due previous months, Freedom Mortgage applied it to principle and did not count it as our monthly payment due XX/XX/XXXX. We were not notified that this was how the payment was handled and it was not clearly noted on future statements. 

The error, and subsequent payment issues as a result, was not clearly identified by us until this month on XX/XX/XXXX when our credit monitoring agency notified us of a delinquency on our mortgage. We subsequently pulled our records and tried to identify the error. Upon first examination of bank records, we saw that monthly payments had indeed been made to Freedom, unaware the issue existed over the short payment due XX/XX/XXXX. 

We requested payment records from Freedom and subsequently began dialogue with them over the matter on Monday XX/XX/XXXX at XXXX in an effort to resolve the issue. At the end of this first conversation, Freedom had put in a request to supervisors to review the issue. On XX/XX/XXXX at XXXX, we contacted the company again to find out what progress had been made. At this time, the representative ( ID # XXXX ) walked us line by line through their records of payment transactions. It was at this time that the error was noted in detail. To resolve the issue, we were told they would move the incorrect amount paid ( {$2500.00} ) over to the correct monthly payment designation and we paid a one time ACH payment over the phone in the amount of {$130.00}. We were also told that a supervisor would look into what would come of the {$81.00} late fee that was incurred each month and whether they would contact the credit bureaus to have the delinquency notice removed. At the end of this phone call we were told to check back in 2 days time to assure the proper actions had been taken, that the deadline in their system to address these issues was later that same day. We would then be able to learn what the final decision was on both the late fees and credit bureaus as well as ensure the funds had been redistributed appropriately. 

Today, XX/XX/XXXX and XXXX, we contacted Freedom Mortgage as directed. ( It should be noted here that their automated system does not have a verbal statement for a directory number to reach customer service. We learned from previous phone calls that dialing " XXXX '' would get you to a representative. ) When you dial in, you have to go through the automated system which stated they were still waiting for our XX/XX/XXXX payment. This was a clear red flag to us that no action had been taken to rectify our account as we were told on the XXXX. Upon discussion with the representative today ( XXXX XXXX, we were told that it had yet to be looked at by a supervisor and to call back again this Friday the XXXX. They had set a new deadline of this Friday to have the issue addressed. 

Our greatest complaints are that this company XXXX ) Did not notify us of the appropriation of funds in a manner other than what was expected. Not only that, they felt no need to reach out in the time that has lapsed to address the issue before contacting all three credit reporting agencies with a delinquency that on a technicality, does not exist as we have made consistent payments at all times since becoming their clients. Our credit has been ruined and they are delaying taking appropriate actions to fix it. We are left hanging in the balance with the potential of this issue persisting into XXXX, incurring more late fees and further credit damage, because they are " too busy '' as XXXX stated, to get to it.

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