Consumer complaint received 2026-03-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
Consumer Financial Protection Bureau Complaint Narrative I am submitting this complaint regarding Freedom Mortgages handling of my mortgage loan servicing, specifically its treatment of property tax payments for XXXXXXXX XXXX XXXX XXXXXXXX, the creation of an escrow account, the application of my payments, and its failure to properly respond to my written notices. The underlying problem began when Freedom Mortgage disbursed property taxes to XXXXXXXX XXXX XXXX XXXX even though an active payment plan already existed with the taxing authority. Freedom Mortgage did not provide advance notice before making that tax disbursement. After doing so, Freedom Mortgage treated the account as though it could impose or maintain an escrow arrangement tied to that disbursement, even though that action was not authorized under the terms I understood to govern this loan relationship. Regulation X treats servicing errors involving the failure to properly handle taxes and other escrow-related charges as covered errors, and Regulation X also recognizes that whether an escrow account may be established depends in part on the loan documents and other applicable law. [ 1 ] [ 5 ] [ 7 ] After the tax disbursement, Freedom Mortgage began treating my loan as delinquent and/or handled my payments through suspense or other unapplied-payment methods instead of correctly applying payments to principal, interest, escrow, or other charges under the loan terms and applicable law. Mortgage servicers must credit payments as of the date of receipt and may not handle payment posting in a way that causes late charges, additional interest, or negative credit reporting when the payment was timely received. [ 1 ] [ 3 ] [ 5 ] I then sent written communications disputing these servicing errors and requesting information. My written notices identified me, identified the mortgage loan account, and described the errors and information requested. Under 12 C.F.R. 1024.35, a servicer must investigate and either correct the error or provide a written determination after a reasonable investigation. Under 12 C.F.R. 1024.36, a servicer must acknowledge a written information request within 5 business days and generally respond within 30 business days unless a valid extension applies. [ 1 ] [ 2 ] [ 5 ] [ 6 ] Freedom Mortgage did not provide a timely and adequate resolution. It failed to properly address my Notices of Error, failed to provide the requested information, and failed to explain its basis for disbursing the taxes, imposing escrow-related charges or treatment, placing funds into suspense, and reporting the loan as delinquent. Regulation X requires a servicer to conduct a reasonable investigation and provide a written response explaining either the correction made or the reasons it concluded no error occurred. For information requests, the servicer must either provide the requested information or state after a reasonable search why the information is not available. [ 2 ] [ 5 ] [ 6 ] The servicing errors caused financial and credit-related harm. Freedom Mortgages conduct created confusion about the amount actually due, interfered with my efforts to maintain the loan, and resulted in inaccurate delinquency treatment and/or reporting. Texas law also prohibits misrepresenting the character, extent, amount, or status of a consumer debt in collection activity. [ 9 ] I request that Freedom Mortgage : 1. Provide a complete written accounting of all payments received, all suspense-account activity, all escrow transactions, and the date and reason for each posting ; 2. Explain in writing why it disbursed XXXXXXXX XXXX XXXX XXXXXXXX taxes despite the existing tax payment plan ; 3. Identify the contractual and legal basis it relied on to create, impose, or maintain any escrow requirement related to this issue ; 4. Correct any misapplied payments and remove any improper suspense balances ; 5. Correct any inaccurate delinquency status or negative credit reporting arising from these servicing errors ; 6. Reverse any fees, charges, or shortages that were caused by the improper tax disbursement or payment application ; 7. Provide all documents and servicing notes relied upon in responding to my prior written Notices of Error and Requests for Information ; and 8. Confirm in writing that the account has been corrected. This complaint concerns mortgage servicing errors, not loan origination issues. The matters raised here involve payment application, tax disbursement, escrow handling, account status, and failures to respond to written servicing-error notices and information requests. References 1. CFPB Regulation X 1024.35 Consumer Financial Protection Bureau Regulation X Current 2. CFPB Regulation X 1024.36 Consumer Financial Protection Bureau Regulation X Current 3. Commentary to 1026.36 ( c ) ( 1 ) Consumer Financial Protection Bureau Official Interpretation Current 4. XXXX Mortgage Servicing Rule Federal Register Final Rule XXXX 5. Text of 12 CFR 1024.35 Federal Regulation e-CFR/Regulation text Current 6. Text of 12 CFR 1024.36 Federal Regulation e-CFR/Regulation text Current 7. Text of 12 CFR 1024.17 Federal Regulation e-CFR/Regulation text Current 8. Text of 12 CFR 1026.36 Federal Regulation e-CFR/Regulation text Current 9. Texas Finance Code Chapter 392 Texas Legislature Statute Current

Company response to consumer: Closed with explanation