Consumer complaint received 2025-05-02 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: MI

Complaint narrative:
Document : Call Log and Notes XXXX XXXX XXXX XXXX XXXX XXXX Participants : Homeowner and Freedom Mortgage representative You called to clarify demolition and restoration funds. 
Participant ( rep ) struggled with disconnecting another call but remained on the line. 
Discussion on XXXX separate contracts : XXXX XXXX ( demolition ) : ~ {$63000.00} XXXX XXXX ( home restoration ) : separate contract Discrepancy found between estimate ( {$63000.00} ) and waiver of lien ( {$68000.00} ). 
You noted a document from XXXX showing the {$68000.00} figure. 
The rep confirmed they found the {$68000.00} document ( misfiled as adjuster report ). 
Plan : Rep to submit paperwork to corporate for approval. 
Reviewed inspection percentages ( XXXX XXXX XXXX XXXX complete ). 
Discussed confusion over a reported loan delinquency : You explained your loan was never delinquent ; you have automatic payments. 
The rep verified and acknowledged your account was current. 
Rep estimated about {$130000.00} should be available. 
Rep to consult a colleague and call you back within XXXX minutes. 
You thanked the rep ; they appreciated you flagging the refinance and promised follow-up. 



XX/XX/scrub>XXXX XXXX XXXX XXXX XXXX XXXX Participants : Homeowner and XXXX XXXX, Freedom Mortgage - Loss Draft Dept You called about insufficient draw funds for XXXX XXXX. 
Rep explained the process for requesting additional funds : Submit contractors material list ( materials only, no labor ). 
Send to management for review ( approval not guaranteed ). 
Processing time : ~10 business days ( unless you provide an overnight label ). 
Inspections required before future draws ( up to XXXX XXXX work complete ). 
You clarified this was regarding the auxiliary draw. 
Rep confirmed its just a regular draw for repairs. 
Rep confirmed you can email or upload a PDF through the portal. 
Provided email : XXXX Rep promised to send you the procedure packet to your XXXX email. 
You thanked the rep ; they wished you a safe drive. XXXX XXXX XXXX XXXX XXXX XXXX Participants : Homeowner and XXXX, Freedom Mortgage - Loss Draft Dept You called to check the status of an additional fund request.

Rep confirmed : Materials list received on XXXX XXXX 
Normal processing time : XXXX business days. 
No draw requested yet ; next step requires an inspection. 
Issue : Contractor submitted materials list on company letterhead, but Freedom Mortgage requires supplier letterhead ( e.g., XXXX XXXX, XXXX ). 
You pointed out previous guidance had said contractor letterhead was acceptable. 
Rep clarified : Materials list must come from supplier. 
Once submitted, management will review if funds can be released before next inspection. 
You asked for confirmation of the process and the email again : XXXX You summarized back to confirm no inspection needed if the supplier list is provided. 
Rep clarified that sending the supplier list allows management to review before the next inspection step. 
You thanked the rep ; they closed the call courteously. 


Freedom Mortgage Corporation Attn : XXXX XXXX XXXX XXXX  XXXX XXXX XXXX, XXXX XXXX Subject : Qualified Written Request Under RESPA for Loan [ Your Loan Number ] Dear Sir/Madam, I am writing to you as a borrower under the above-referenced mortgage loan, which is secured by the property located at XXXX XXXX XXXX, XXXX, XXXX  XXXX. This letter constitutes a " Qualified Written Request '' under the Real Estate Settlement Procedures Act ( RESPA ), Section XXXX ( e ). 

Background : On [ Date of Incident ], my property sustained significant damage due to a tornado. My insurance provider processed the claim and issued a settlement check, which was endorsed and forwarded to Freedom Mortgage for deposit into my escrow account to fund the necessary repairs. 

Issues : Delayed Disbursement : Despite submitting all required documentation, there has been an unreasonable delay in the disbursement of escrow funds necessary for the reconstruction of my home. 

Lack of Communication : Multiple attempts to obtain information regarding the status of the disbursement have been met with inadequate responses or no response at all. 

Information Requested : Pursuant to RESPA, I request the following information : Detailed Account of Escrow Funds : The total amount of insurance proceeds deposited into my escrow account. 

An itemized statement of all transactions related to these funds, including dates and amounts. 

Disbursement Policy : A copy of Freedom Mortgage 's policy and procedures regarding the disbursement of insurance proceeds held in escrow for property repairs. 

Status Update : The current status of my disbursement request, including any reasons for the delay. 

The name and contact information of the individual or department handling my case. 

Action Requested : Immediate Disbursement : Prompt release of the escrow funds to facilitate the reconstruction of my home. 

Policy Clarification : A clear explanation of Freedom Mortgage 's procedures for handling insurance proceeds related to property damage. 

Compliance Assurance : Assurance that Freedom Mortgage complies with all applicable federal and state laws governing escrow accounts and disbursements. 

Attachments : Copies of previous correspondence regarding this matter Insurance claim documentation Photographs of property damage Please acknowledge receipt of this request within five ( 5 ) business days as required by RESPA and provide a substantive response within thirty ( 30 ) business days. 

Thank you for your prompt attention to this matter. 

After repeatedly sending the required documents to Freedom Mortgage, no response was given within 10 business days after submitting the required documents. Escrow funds were withheld despite insurance checks being received up to 5 months after requests were made. There was no clear timeline for disbursements when asked. And, oftentimes, disbursement times went well over the given response times. Multiple follow-ups were ignored or delayed with inconsistent information. The contractor had to pay out of pocket for repairs to keep the project moving. My home had been deteriorating due to delay after delay until the contractor used out-of-pocket expenses to protect the integrity of the home. My wife, family, and I have been experiencing emotional distress, triggering XXXX from our military experience, including the XXXX XXXX XXXX  by the tornado, not to mention the unsafe/unresolved living conditions. There was even a servicer who gave false or misleading information, claiming that my mortgage was in default for non-payment, after I had just refinanced my mortgage with Freedom Mortgage. Then, an administrative server said that they didn't even know that my home was damaged by a natural disaster, and that the home was coded incorrectly, and that's why my home was in default for nonpayment. I suspect that escrow funds are being misused or misapplied. I filed complaints ( e.g., Freedom Mortgage, VA ), and still no resolution, well over the provided 30-day request. This is so appalling that XXXX XXXX has blamed my contractor for them having to pay our temporary housing rental.

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