Consumer complaint received 2026-05-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Freedom Mortgage Company
State: VA

Complaint narrative:
Freedom Mortgage has engaged in a recurring annual pattern of payment crediting failures that has resulted in a XXXX drop in my credit score and has now triggered false reports of mortgage delinquency in two consecutive years ( XX/XX/XXXX and XX/XX/XXXX ), despite the fact that every monthly payment has been drafted on time from my bank account on autopay. The mechanics : I have been on automatic ACH payment drafting since loan origination. My loan has a buydown subsidy that requires two coordinated drafts per month. Funds have always been available ; my bank has confirmed no draft has ever been returned. Each year, Freedom performs an escrow analysis in XXXX that increases my monthly payment effective XX/XX/XXXX. Freedom 's own escrow disclosure statement promises in writing that " by having recurring payments set up through FreedomMortgage.com, we'll adjust for any changes in your monthly payment automatically. '' Freedom does not adjust the autopay amount. The result is that the XXXX autopay drafts the prior period 's amount, Freedom marks it as " Unapplied Funds '' rather than crediting it, and the account is then reported delinquent. In XX/XX/XXXX, autopay drafted {$1500.00} on XX/XX/XXXX and {$1700.00} on XX/XX/XXXX a total of {$3300.00} cleared from my bank account, against a new monthly payment of {$3400.00}. Freedom held the funds as " Unapplied, '' assessed a {$100.00} late fee on XX/XX/XXXX, and reported me delinquent. On XX/XX/XXXX, Freedom briefly posted the payment, waived the late charge, and brought the account current. Three days later on XX/XX/XXXX Freedom REVERSED the entire posting with no explanation. I was returned to delinquent status. This same application-and-reversal sequence has now occurred every month from XXXX through XX/XX/XXXX. As of my XX/XX/XXXX statement, Freedom holds {$1200.00} of my money as " Unapplied, '' maintains a {$2900.00} escrow balance, and reports me {$7000.00} past due. The identical sequence occurred in XX/XX/XXXX : autopay drafted the prior amount, Freedom marked it " Unapplied, '' briefly applied it on XX/XX/XXXX, then reversed the application on XX/XX/XXXX. I was reported delinquent for XX/XX/XXXX. On XX/XX/XXXX, I disputed the delinquency reporting through XXXX 's portal ( Case ID XXXX ). On XX/XX/XXXX, Freedom closed the case as " Resolved '' with a form response stating that " the delinquencies for XX/XX/XXXX and XX/XX/XXXX are accurate as reported. '' The response addressed only the escrow analysis itself ( which I am not disputing ) and ignored the actual issue Freedom 's failure to apply payments it has received and is currently holding. This was not a reasonable investigation under 15 U.S.C. 1681s-2 ( b ). On XX/XX/XXXX the same day I am filing this complaint I called Freedom and spent approximately one hour and twenty minutes on the phone ( including being disconnected once and placed on hold for about 40 minutes ). I was eventually transferred to a representative named XXXX in Freedom 's escalation department. XXXX told me that Freedom 's system shows TWO bank accounts associated with my loan, and that the system is " choosing the wrong one. '' One is my actual account ( nicknamed " XXXX XXXX '' ) ; the other is described as a " previously used checking '' account that I do not recognize and have never paid from. XXXX could not determine which account was correct, could not fix it at her level, and said she would need to escalate further. She also told me Freedom would not call me back I would have to call them. This is Freedom 's own escalation representative confirming that the root cause of two years of false delinquency reports, late fees, and a XXXX credit score drop is an internal data error in Freedom 's servicing system a duplicate or phantom bank account that even their escalation team can not identify or remove. The error has not been corrected. I am also sending Freedom a formal RESPA Notice of Error and FCRA Direct Dispute via certified mail to XXXX XXXX XXXX XXXXXXXX, XXXX, dated the same day as this complaint. What I am asking for : ( 1 ) immediate application of all funds Freedom is holding to bring my loan current ; ( 2 ) reversal of all late fees assessed in XXXX and XXXX ( {$410.00} total ) ; ( 3 ) deletion of all delinquency reporting on this account from XX/XX/XXXX forward, with written confirmation to all three credit bureaus ; ( 4 ) correction of my autopay amount AND removal of any bank account on file other than my actual account ; ( 5 ) a written explanation of why the reversals occurred, where the phantom second bank account came from, and what Freedom is doing to prevent recurrence ; ( 6 ) a single named point of contact for this account going forward. Documentation I can provide : all monthly statements from XX/XX/XXXX through XX/XX/XXXX, both escrow analyses, the XX/XX/XXXX dispute response, screenshots of the Freedom portal showing " AutoPay On '' simultaneously with " You have a past due payment in the amount of {$3500.00}, '' and bank statements confirming every ACH draft cleared.

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