Consumer complaint received 2026-06-01 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: VA

Complaint narrative:
In XXXX, my wife and I noticed that our mortgage payment had increased from {$3600.00} to {$3900.00}. We did not receive any notification letter explaining the increase. It was only after my wife called to inquire about the new payment amount that she was informed it was due to an escrow shortage of {$2100.00} from the previous year. At that time, the manager advised my wife that we had the option to pay the entire escrow shortage in a lump sum and return our monthly payment to the original amount of {$3600.00}. Since I was XXXX on active military duty at the time, we decided not to pay the escrow shortage and instead adjusted to the higher monthly payment. In XXXX, we received an escrow analysis indicating a new escrow shortage of {$3200.00}, which would increase our monthly mortgage payment again, effective XX/XX/year>, to {$4000.00}. At that point, we decided to pay the escrow shortage in full in order to reduce our monthly payment to {$3700.00}, as disclosed in the Freedom Mortgage application ( screenshot attached to this complaint ). We made XXXX escrow payments through the Freedom Mortgage application : XX/XX/year> : {$1600.00} XX/XX/year> : {$1600.00} This resulted in a total payment of {$3200.00}, slightly more than the amount required to cover the escrow shortage. After more than a week passed without any update to our mortgage payment amount, we called Freedom Mortgage on XX/XX/year>, and again on XX/XX/year>, using the customer service number XXXX. During these calls, we received no meaningful assistance. We were repeatedly transferred between departments, placed on hold for extended periods, and whenever we requested to speak with a XXXX, we were placed on hold again and ultimately disconnected. This occurred more than XXXX times ( screenshots attached ). On XX/XX/year>, I was finally able to speak with a customer service representative. After a XXXX XXXX XXXX minutes call, the representative informed me that Freedom Mortgage had applied our escrow payment to the principal balance of the loan because, according to their policy, a full escrow shortage payment is not permitted. The representative stated that Freedom Mortgage wanted to maintain additional payment coverage to protect the loan in the event of future issues. At that point, I was outraged and frustrated. I requested to speak with a XXXX and was placed on hold from approximately XXXX XXXX XXXX XXXX XXXX ( XXXX minutes ), at which time the call was disconnected. I am filing this complaint because I believe Freedom Mortgage has improperly applied my funds and engaged in financial misconduct, resulting in an unnecessary increase of {$420.00} in my mortgage payment obligations. We have not yet made our XXXX mortgage payment because of this situation. We do not accept being charged for the escrow shortage a second time. The escrow shortage has already been paid in full, and Freedom Mortgage must properly apply those funds as intended.

Company response to consumer: Closed with explanation