Consumer complaint received 2025-09-05 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: CA

Complaint narrative:
In XX/XX/XXXX I changed agents brokering my insurance policies. XXXX insurance would not change the broker of record until the policy renewed in XX/XX/XXXX. In XXXX, XXXX they changed the broker of record and issued a new policy number. This prompted a cancellation notice. When they issued the new policy, they issued the new evidence of insurance. However, Freedom Mortgage employees didn't do their job and record it. They recorded the cancellation, but not the new one. I know this to be true because I have another property on this insurance policy with another mortgage company and they had NO problems with establishing the new policy and verifying there were no lapses in coverage. I received a notification in XXXX XXXX I needed to provide proof of coverage. My agent sent this information to them. I received another one in late XXXX and again, she sent verification and phoned and talked to an employee. In XXXX, I received a notification that since I did not satisfy their requests, they were going to implement a policy for the lapse in coverage for XXXX. They then opened an escrow account and paid my insurance policy for the entire year to the amount of {$1800.00}. I called and spoke to several people. I was berated by the first person who INSISTED I didn't pay my insurance and because I failed to do so, they were forcing it upon me and I had to pay them or my loan would default. I explained this isn't the case. I provided her with names and dates of the proof given and asked her to reread the documents. After several hours, she said she would credit me for the {$260.00} for the lapse in XXXX that was there, but that I would need to talk to the escrow dept regarding the rest. I told her I don't have an escrow account. She transferred me and I spoke to a woman who confirmed, I did not have an escrow account. The other day, I receive an escrow statement. They paid the entire year, so I called this morning and asked to speak to a supervisor. I spoke to a XXXX ( agent # : XXXX ) she informed me the only way out of this was for ME to call the insurance and ask for the refund. I told her that this was their mistake to fix. She then told me I could pay the insurance myself the FULL {$1800.00} and send them the receipt and they would close the escrow. I told her I shouldn't have to do that as my policy is a multi-policy account ( I have another property as well as cars and an umbrella policy all with one payment that is withdrawn from my bank account each month ). I reiterated that I have NEVER defaulted or missed a payment with my insurance and there was NEVER a lapse in coverage. I asked for a supervisor. I was on hold for XXXX hour and XXXX min of my XXXX hour and XXXX min call. She kept coming back that she couldn't find a supervisor- but they told her that if she took a message they would call me today ( how could they tell her this if she couldn't find one??? ). I told her I would continue to hold. She tried to transfer me to the insurance dept. I told the agent ( XXXX ) that I was not going to talk to him, that I had wasted enough time, I needed a supervisor. He said it wasn't a problem and told XXXX to get a supervisor for me. I was placed on hold again. She finally came back and said that a Perfecto ( agent # : XXXX ) would call me back IMMEDIATELY after hanging up as she couldn't transfer the call. No one has returned my call. They have not only charged me for the full year ( XXXX XXXX XXXX ) but they are also charging me for next year ( XXXX XXXX )! DESPITE the fact I DO NOT HAVE AN ESCROW ACCOUNT WITH THEM! They have increased my payment due on my mortgage for WAY more than I'm due and I am at a loss on how to resolve this when no one wants to do their jobs and fix THEIR mistake.

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