Consumer complaint received 2023-02-01 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: Freedom Mortgage Company
State: CT

Complaint narrative:
Ref : Freedom Mortgage Corporation ( referred to as FMC ) Dear CFPB : Our complaint is about Freedom Mortgage Corporations negligence in the servicing of our VA loan since we exited the CARES ACT forbearance on XXXX It is still unresolved and on XX/XX/XXXX FMC canceled our Loss Mitigation and closed their assistance. Its now over 2 years and it is still not resolved. 

On XX/XX/XXXX, we were approved for the VA Partial Claim Plan, due to begin XX/XX/XXXX, and our new payment amount of {$2900.00} and 3.25 % which is the same rate that we have had since the loan began in XXXX The VA was going to purchase the amount of the indebtedness and add a promissory note. The problem began by FMC failing to provide the loan documents in XXXX XXXX We called & sent emails but no response from anyone to advise us of any the delay. We made our monthly payment in the amount of {$3000.00}. XXXX we paid the new payment in the amount of {$2900.00} while waiting. 

FMC failed to provide timely loan documents to us to begin making the new loan payment XXXX XXXX XXXXXXXX for the approved VA Partial Claim Plan and consequentially FMC failed to complete within 120 days from the time we exited the COVID-19 Forbearance Plan which was XXXX This was according to VAs regulations. 

FMC deliberately delayed our 2nd VA Partial Claim package that arrived XX/XX/XXXX and modified the type of loan package, terms, and never sent any letter that we were approved for a different loan prior to receiving these loan documents. This loan was for 3.25 % interest, but FMC turned it into a 30 yr mortgage for the post-modification amount and the partial claim to be added as a secondary note to be paid at the end or if we sold our property. The partial claim was $ XXXX. The interest and additional years add ~ $ XXXX to our debt. We are being penalized for a COVID-19 Emergency and FMC stood to earn a lot of money. We were forced to accept it. The VA Partial Claim program was expiring XX/XX/XXXX. We asked for an extension, and we asked for them to schedule their notary but they never did. FMC did not provide adequate time to review, and they never scheduled their notary that was offered in the letter dated XXXX that was included with the loan documents. This was intentionally done by FMC. FMC voided our loan package as it was not completed, executed, notarized and returned within the 14 calendar days from receipt, that we were given. FMC told us we had to re-apply and start the process all over again, now we had defaulted, the loss mitigation protection had ended. FMC deliberately stalled when the federal government had announced the rates were going up once again and the VA Partial Claim ended XXXX 
The next 5 months have been XXXX. After submitting the full loss mitigation and all the documents in XXXX, more delays and excuses and lies FMC stated, we were approved XX/XX/XXXX and eligible for VA Covid-19 Disaster Modification. This added {$230000.00} in debt and 10 years+ to our loan ; the last payment would be XXXX The interest rate FMC was charging us is 6.625 % ; payments would be {$3600.00} a month. They are out of their mind. This is all due to their negligence ; not ours. We should not be penalized for asking for forbearance. The other stipulations for this loan FMC said that we would have to make three trial period payments in time to have a Final Modification to start XXXX FMC again, never discussed this loan with us. There is no way we would be able to make that high of a payment. FMC knew that. We had made 13 monthly payments in XXXX. FMC has falsified, misled, mismanaged, and manipulated us too many times. FMC has violated federal regulations in the way they have mismanaged our loan. 
There have been numerous unresponsive phone messages left unanswered, emails unanswered, pertinent information not entered in our loan file that was important for the underwriters in their decision-making process. This is an ongoing problem. Their Loss Mitigation department is worthless. 
FMC falsified information in our records for FMC to benefit.

FMC has misrepresented their intentions to provide all options available to protect the veterans and other borrowers in their best interests so they can stay in their home.

FMC does not appear to follow any protocol when they were asking me what loan package FMC supposedly sent but in fact, this was clearly to cover up something.

FMC falsified payment records. I have all of the confirmations too.

FMC falsified statements that FMC recorded in the evaluation for the best VA loan option that we were eligible for- the XXXX XXXX COVID-19 Disaster Modification loan by stating the borrowers stated we were unable to resume making payments and selected this 3rd loan deliberately after the federal government kept increasing mortgage rates. FMC qualified us at a 6.625 % rate for 30 years-how? We had been paying this loan since XXXX! FMC was not looking out for their borrowers ; FMC was looking out for FMC. They knew if they could pull this off FMC stood to gain over {$230000.00} in their pocket. Is that fair to any borrower to be penalized for having a financial hardship that was out of their control due to an unprecedented pandemic? This would add to the partial claim amount of {$33000.00} and add {$230000.00} in debt? These types of practices clearly violate the governments intentions of keeping the borrowers in their homes. 

FMC manipulated their payment center to only allow payment in full on our account in XX/XX/XXXX. It took {$39000.00} which was the amount they demanded in full. The system would not accept the one-time payment. I immediately called our back and told them do not allow that payment to be processed as we did not have the funds obviously, but what money we did have to pay our other bills would have been all returned. 

FMC manipulated their message center after XXXX XXXX XXXX to avoid their customers, the ability to message for their help. It still is not working. 

FMC denied us key protections and withheld updated loan options from us that were available in the VAs servicers handbook. This is the VAs Disaster Extend Modification loan that was made available until XXXX XXXX XXXX In addition, this extension deadline gives the borrowers impacted by the COVID-19 pandemic an additional 15 months to get loan relief. FMC did not disclose this information. FMC is negligent.

FMC has charged us late fees in the amount of {$1000.00} that is stated on the outstanding amount due for the XX/XX/XXXX statement. It has never been in any other statement. This is in violation of another requirement that the VA has in place during the COVID-19 Emergency that service providers are not allowed to do. 

FMC canceled our Loss Mitigation on XXXX  as we rejected the 3rd offer. They are looking for full payment. 

We have tried reaching out through FMC message center when it was working, through emails, phone calls. Loss Mitigation is unresponsive. They all lie when you do get someone- always saying they will call you back on a certain day and time but don't. 
We make our payments but FMC just continues to torture their borrowers. 

The US Treasury has regulations in place to protect the guaranteed government backed loans for a reason. It appears to us that FMC has willingly and negligently engaged in practices otherwise detrimental to the interests of the Veterans or the Government. ( XXXX XXXX XXXX XXXX  CFPB please stop FMC from misleading, misrepresenting, mismanaging, manipulating, denying key protections, and curtail the fraudulent wrongdoing to prevent further harm. FMC should not be allowed to engage in any government offerings. FMC is scamming their borrowers when they are at their lowest when we are so desperate to stay in their home.

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