Consumer complaint received 2025-11-16 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: NV

Complaint narrative:
Freedom Mortgage has committed multiple servicing errors relating to my homeowners insurance, the handling of my escrow account, lender-placed insurance, and failure to properly respond to my written and electronic communications. These errors have resulted in two insurance lapses, loss of access to previous insurance coverage, financial harm, and a period of more than a year in which Freedom 's representatives alternately claimed I was covered under lender-placed insurance while their recent ( XX/XX/XXXX ) written correspondence stated no such policy existed. Note that I have never missed a mortgage payment, autopay all my bills, and have excellent credit. Documentation of all communication described below can be provided. 

Timeline of events : XX/XX/XXXX I received a notification of transfer letter from my prior mortgage servicer, XXXX Bank, describing the transfer to Freedom Mortgage effective XX/XX/XXXX. The letter specified that Information we have concerning required insurance on your property will be transferred to FREEDOM MORTGAGE CORPORATION and we will notify your insurance provider of the transfer. My insurance company was XXXX ( XXXX ). 

XX/XX/XXXX Freedom Mortgage sent me a letter ( written XX/XX/XXXX ) via mail stating that they had no evidence of me having hazard insurance on my home and that could result in force-placed insurance. The letter said that I should provide my insurance information to avoid having to pay Freedom Mortgage for any lender-placed insurance in the interim. 

XX/XX/XXXX Once I received/opened the previously described letter, I sent a message through the Freedom Mortgage online message portal inquiring about why I received a letter in the mail from Freedom Mortgage about a lapse in hazard insurance since I had an insurance policy. 

XX/XX/XXXX Freedom Mortgage responded that my insurance policy expired and that I needed to provide evidence of new coverage. 

XX/XX/XXXX I responded to Freedom that I had confirmed with XXXX XXXX that my policy was set up to be paid by the mortgage servicer from my escrow account and that they ( Freedom ) had failed to pay it resulting in the insurance expiration. 

XX/XX/XXXX I contacted XXXX XXXX to request my policy information. I confirmed that Freedom Mortgage was listed as the payee on my policy and received my proof of insurance via email. 

XX/XX/XXXX I sent my proof of homeowners insurance from XXXX XXXX XXXX Freedom Mortgage through their online message portal. The proof of insurance letter from XXXX lists Freedom Mortgage as the mortgagee. 

XX/XX/XXXX Freedom responded via the message portal confirming that they had received my proof of insurance XX/XX/XXXX Freedom reached out again through their online portal, confirming that they have XXXX XXXX XXXX listed as my provider, included the policy number and acknowledged the premium payment amount. 

-the following year- XX/XX/XXXX Having received an escrow reimbursement check for {$980.00} and a letter in the mail from Freedom that I was without hazard insurance ( again ), I attempted to access my XXXX XXXX policy online and was denied entry to the portal, saying that I didnt have a policy. I then called XXXX XXXX at XXXX. I gave them my policy number for my XX/XX/XXXX, XXXX XXXX, XXXX policy that they had provided me ( and that I had sent to Freedom in XX/XX/XXXX ). The XXXX representative said that the policy number I gave them was not active due to non-payment. Note that there had been no indication from XX/XX/XXXX when I provided that policy to Freedom until XXXX of XXXX that I was not insured by XXXX. 
I called Freedom Mortgage at XXXX, expressing my frustration that this was occurring again and that I needed them to find out what was going on. The representative I talked to said that he looked into it and that they had, in fact, failed to pay my homeowners insurance. He explicitly said that it was their error. He claimed that the issue was a name change, that the last name on the insurance did not match the last name on the mortgage but he acknowledged that that they failed to notify me that this was an issue. This, however, should not be the reason for their failure. The last name on my XXXX XXXX policy from Oct 2028, 2024 through XX/XX/XXXX was the same as the last name that was also on my mortgage until XX/XX/XXXX when I notified Freedom of my name change, and received confirmation of this update in their system. 
The representative and I talked at length about how to correct this situation. He told me that I had been covered over the past year under their lender-placed insurance and that the premium for that was about {$1700.00} ( nearly twice as much as my XXXX policy ). He said that if I got my XXXX policy reinstated that they would reimburse me the difference between my XXXX policy and the more expensive lender-placed insurance premium. ( Note that I have not ever been billed for or paid any lender-placed insurance out of pocket. I assumed this was being withdrawn from my escrow account during this conversation ) I told him that XXXX was willing to reinstate my policy ( per my conversation with them earlier that afternoon ) but they needed immediate payment, and I was needing proof that I had the lender-placed insurance over the past year. I asked the Freedom representative to provide me with that documentation and he said that they would send that to me within the next day or two, then follow up with me via phone call on Monday ( XX/XX/XXXX ). 

XX/XX/XXXX I had received a call on XX/XX/XXXX from Freedom but was unable to answer. I checked my Freedom online message center and my email for the proof of lender-placed insurance and had received nothing. I sent a message in the portal to request that documentation and received an auto-confirmation that the message was received and they would post their response in the message center. 

XX/XX/XXXX Having still not received any documentation after my phone and message request the week prior, I called Freedom again at XXXX. This representative said that the proof of insurance I provided in XX/XX/XXXX arrived too late for them to pay it and was seemingly attempting to find ways for the error to have been mine. In my trying to get a handle on communication timelines and who owed what and when, he mentioned that the lender-placed insurance was not paid out of escrow. I asked again for proof of documentation and he said they would email it. I confirmed my email address with him. I wanted to wait on the line to receive it, but he said that their outgoing email was down and that his supervisor would send it at the end of the day. I asked if there was another way to get it, specifically whether they could just upload it to their online message portal. He said that he didnt have access to that. When I asked who did, he said I dont know. 

XX/XX/XXXX I did not receive the documentation the representative said they would send the evening prior. I sent a follow up message in the Freedom Mortgage message portal asking that we get this resolved ASAP. 
I called XXXX XXXX  to explain the issue with the documentation and see if we could just get a new policy set up so that I knew for sure I was insured. The representative warned me that since it would now have to be a new policy instead of a continuation of the prior one, that the premium would likely be higher than before. She tried to get a policy set for me twice but kept getting an error message. She connected with other colleagues to try to get the issues resolved, but ultimately they found that they were unable to provide me with a new policy since I was a risk due to the prior non-payments. The representative said she did everything she could knowing that the non-payment issue was the fault of Freedom and not me, but they were unable to override the system to allow it. She said I would have to wait about 6 months and show positive insurance payment record before Id be able to work with them again. I later received a letter in the mail confirming my ineligibility. 
Note that XXXX is also where I have my auto insurance, it was bundled, meaning that I am no longer receiving those discounts either. 

XX/XX/XXXX I got an online quote from XXXX for homeowners insurance it was nearly twice the cost as my original XXXX premium and for less coverage. However, I then received the same letter in the mail stating that I am not eligible for coverage for the same reasons XXXX gave. 

XX/XX/XXXX After XXXX weeks of requesting the lender-placed insurance documentation, I finally received a response from Freedom Mortgage in my online portal message box. Despite the Freedom representatives claiming/confirming that I was covered under their lender-placed insurance when I talked with them on the phone on both XX/XX/XXXX and XXXX, the message I received in my online portal on on XX/XX/XXXX stated that As of the date of this response a Lenders Placed Insurance is not active on the account, meaning that I have been uninsured for over a year, putting me at significant personal and financial risk due to their failures and dishonesty. 

I am attempting to acquire homeowner 's insurance on my own, but having been denied by multiple servicers already, I fear that Freedom Mortgage has obliterated my options, forcing me to purchase their lender-placed insurance. 

In summary : Freedom Mortgage 's servicing failures have resulted in : ( 1 ) Two lapses of insurance coverage, ( 2 ) Loss of eligibility with my prior insurer, ( 3 ) Loss of bundled auto/home discounts, ( 4 ) Increased insurance premiums as quotes now double my prior rate, ( 5 ) Inability to acquire new coverage- I have been declined by 5 insurance companies so far and am still searching, ( 6 ) Over one year of uninsured risk, and ( 7 ) Administrative and emotional burden attempting to resolve Freedom 's errors, including loss of work hours while I communicate with Freedom and XXXX representatives and attempt to find a company who will now insure me. 

There is also evidence to believe that Freedom Mortgage is engaging in deceptive practices with regard to late charges posted on mortgage statements in order to make additional profit off their customers. While I have never paid late or missed a payment, my monthly statement posts a {$40.00} " unpaid late charge '' every month, starting with my very first billing statement until now. The " Amount Due '' listed, in bold font, in three places on the statement includes this {$40.00} charge even though nothing has been paid late, and this is the first and only monthly statement provided over a month before the date at which the late fee should be applied. I am enrolled in Freedom 's auto-pay, so this late fee has never been extracted from my account, but I suspect other customers are getting scammed, particularly since there are multiple complaints on the XXXX  website about this issue.

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