Consumer complaint received 2026-03-30 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
Subject : Complaint Against Freedom Mortgage for Payment Misapplication and Resulting Credit Harm I am submitting this complaint regarding a serious servicing error by Freedom Mortgage that has caused significant financial harm and damage to my credit profile. On XX/XX/year>, I made my regular monthly mortgage payment through my bank, XXXX, via a recurring online bill pay transaction. The payment amount was {$1000.00}. At that time, my mortgage payment had increased to {$1200.00}, resulting in a shortfall of {$220.00}. Despite receiving this payment, Freedom Mortgage failed to properly apply the funds to my account. Additionally, the company did not return the payment to me. I have maintained consistent, on-time payments for over two years and have documentation confirming that this payment was sent on time and that no funds were returned to my account. Instead of correcting the partial payment or notifying me in a timely and reasonable manner, Freedom Mortgage charged me for two full monthly payments of {$1200.00} on the subsequent billing statement, in addition to assessing late fees. This reflects a clear failure in payment processing and account servicing. As a direct result of this error, Freedom Mortgage has reported five late payments to the credit bureaus despite receiving payments on time each month. These negative marks have significantly damaged my credit score and have directly impacted my ability to refinance my home loan. Furthermore, this situation has created complications with my property management company, causing additional financial and personal stress. This conduct appears to violate the mortgage servicing requirements set forth under Regulation X ( 12 C.F.R. 1024 ), which requires services to properly handle and credit borrower payments and to provide accurate, timely information regarding account status. Furthermore, the failure to accurately report my payment history and the furnishing of negative information to credit reporting agencies constitutes a potential violation of the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ), which requires furnishers to report information accurately and correct errors promptly. As a direct result of Freedom Mortgages actions : Five late payments have been reported to the credit bureaus, significantly damaging my credit profile even though I have continuously made payments on time. My ability to refinance my home loan has been negatively impacted. I have experienced ongoing issues with my property management company, creating additional financial and personal hardship. I have maintained a consistent history of on-time payments for over two years, and I have documentation confirming that this payment was made and that no funds were returned to my account. Freedom Mortgages failure to properly apply my payment, combined with the inaccurate reporting of delinquencies, reflects negligent servicing practices and a disregard for federal consumer protection requirements.

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