Consumer complaint received 2025-07-21 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:
I am submitting this formal complaint regarding my mortgage servicers failure to timely endorse and return an insurance claim check, resulting in unnecessary delays in essential home repairs and financial hardship. 

After suffering property damage and filing a successful insurance claim, a check was issued that included my mortgage servicer as a co-payee. Per standard procedure, I promptly forwarded the check to the servicer for endorsement so I could pay contractors and move forward with repairs. 

To my dismay, the mortgage servicer has failed to act within a reasonable timeframe. When I contacted the customer service line, I was connected with an outsourced call center that provided minimal assistance and a generic processing timeline of XXXX business days, followed by an additional 5 days for return via standard USPS. These representatives were unable to provide clear status updates or escalate the issue despite the fact that the repairs have already begun and time is of the essence. I can see on my mortgage account that the funds are available ; however, Freedom refuses to grant me the funds and says I have to wait another XXXX days. I asked about the company receiving interests on the funds and the customer service person indicated they do, but I will not get that funding. 

To illustrate the disparity in service : another financial institution, which was also listed on the check as a lienholder, was able to endorse and return the check within 30 minutes of receipt. This highlights that the excessive delay on the part of Freedom Mortgage is not industry standard but rather a reflection of inefficient and unresponsive business practices.

Concerns : Unreasonable Delay : The processing timeframe is excessive and not reflective of current technological or industry capabilities. 

Lack of Communication and Transparency : Customer service provided no substantive updates, refused to expedite the process, and failed to provide confirmation of receipt or expected completion date.

Outsourced Call Center Deficiencies : The thir
d-party representatives were unable to address or escalate urgent homeowner issues. This lack of empowerment and training puts consumers at further risk.

Financial Harm and Risk to Property : Due to the delay, I am facing delays in payment to contractors, which jeopardizes ongoing repair work and could increase costs.

Potential UDAAP Violation : The servicer 's actions may constitute an unfair or abusive practice under the CFPBs standards due to the failure to process critical claim funds in a timely and transparent manner.

Requested Action : I request the CFPB investigate this matter and require Freedom Mortgage to : Immediately process and return my endorsed check via overnight mail ; Review and reform their insurance claims processing policies to reflect reasonable turnaround times ; Improve transparency by providing timely status updates and points of contact for urgent matters ; Ensure customer service representatives are adequately trained and equipped to handle time-sensitive claims. 

I am seeking relief not only for myself but also to prevent other homeowners from experiencing similar treatment during a time of distress. Mortgage servicers should not be allowed to delay disbursement of insurance proceeds with no accountability. 

Thank you for your attention to this matter.

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