Consumer complaint received 2026-03-17 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: Freedom Mortgage Company
State: AZ

Complaint narrative:
I am submitting a complaint regarding how Freedom Mortgage has applied my mortgage payments under a biweekly payment arrangement, which has resulted in improper application of funds, late fees, and negative account status. I was enrolled in a biweekly payment program through Freedom Mortgage. Under this arrangement, I was instructed to make payments every XXXX weeks aligned with my paychecks. I was told that XXXX payments made within a month would be applied toward the following months mortgage payment, and that in months where I receive XXXX paychecks, the additional payment would be applied toward principal. I was also instructed to begin making payments prior to the first of the month, so that XXXX payments would be collected in advance and applied to the upcoming months payment obligation. However, in practice, Freedom Mortgage has not consistently applied payments according to this agreement. Specifically, in XXXX and XXXX of each year, even when I only make XXXX biweekly payments ( not XXXX ), the company applies XXXX of those payments toward principal instead of applying both payments toward the upcoming monthly payment. Additionally, there is inconsistency in how my payments are being handled. For example, a payment I made on XX/XX/year> in the amount of {$1000.00} should be applied toward the XX/XX/year> payment under the agreed biweekly structure. However, the company is attempting to apply this payment toward the XX/XX/year> payment instead, which contradicts the agreed process of applying payments in advance. This inconsistency demonstrates that payments are not being applied in a clear or consistent manner, and that the company is changing how payments are applied in a way that creates confusion and financial harm. As a result of these misapplications : My monthly payment is left short. I am assessed late fees. My account is reported as delinquent or past due, despite making payments as instructed and on time. This issue has occurred repeatedly over multiple years. I have contacted Freedom Mortgage to address the problem, but they have not corrected the prior misapplications. Instead, they have advised me to make additional payments to bring the account current. This proposed solution is not acceptable because : It requires me to pay extra funds to compensate for their errors. It does not address the underlying issue of incorrect and inconsistent payment application. It creates a risk that future payments will again be misapplied, causing the same problem to repeat. I am requesting that Freedom Mortgage : Correct all prior payment misapplications. Remove any associated late fees or negative account impacts. Ensure that future biweekly payments are applied consistently in accordance with the original agreement. Provide a clear and accurate accounting of how my payments have been applied. This issue has caused financial harm and ongoing concern about the accuracy and consistency of my mortgage account.

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