Consumer complaint received 2026-06-15 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Freedom Mortgage Company
State: IL

Complaint narrative:
I am filing a complaint regarding Freedom Mortgage 's mishandling of my insurance loss draft claim following water damage to my home. The water damage claim was opened on XX/XX/XXXX. My home was temporarily uninhabitable due to the loss of water service, requiring my family to live in a hotel while emergency repairs and rebuilding were completed. The original estimated completion date for this project was XX/XX/XXXX. Instead, this process has extended to XX/XX/XXXX due to repeated administrative delays, contradictory information, communication failures, and unnecessary duplicate requirements imposed by Freedom Mortgage. Throughout this process, I promptly complied with every request made by Freedom Mortgage. I mailed insurance checks, adjuster reports, contractor estimates, invoices, completed inspections, submitted photographs, verified my mailing address multiple times, and provided additional documentation whenever requested. Despite my repeated compliance, Freedom Mortgage repeatedly created additional delays. Examples include : * I experienced significant difficulty reaching the Loss Draft Department due to lengthy hold times, repeated transfers, and communication barriers. * Freedom Mortgage repeatedly stated that documentation was missing after previously confirming they had everything needed to proceed. * Required documents were not requested until weeks into the process, including a waiver of lien that was not previously communicated. * Multiple letters regarding inspections arrived weeks after they were printed, and some letters never arrived at all. * A disbursement check that was issued solely in my name was mailed to the wrong address, causing additional delays and financial stress while awaiting reimbursement. * My family incurred out-of-pocket expenses for materials while waiting for reimbursement because disbursements were delayed. The most concerning issue involves the inspection process. I requested the final inspection on XX/XX/XXXX. The final inspection was completed on XX/XX/XXXX. On XX/XX/XXXX, I received written confirmation that the final inspection had been completed and passed and that the next step was to verify my mailing address and receive the remaining funds. I immediately verified my mailing address and received confirmation that my verification was received. On XX/XX/XXXX, the online portal still reflected that the final inspection was complete and passed, and I verified my mailing address a second time. However, on XX/XX/XXXX, when I attempted to report the final insurance payment, the online system suddenly indicated that another final inspection was required. I scheduled this duplicate inspection despite the fact that the repairs have been completed since XXXX and the home conditions have not changed. This complaint is not based on a single isolated error. It is based on a documented pattern of administrative failures that have repeatedly delayed the release of insurance funds and unnecessarily extended an already difficult recovery process for my family. I have attached a detailed timeline and supporting documentation. I am requesting that Freedom Mortgage immediately process the final insurance payment, release all remaining escrowed insurance funds, provide a written explanation for the duplicate final inspection requirement after a final inspection was already completed and passed, and review the handling of my loss draft claim to prevent further unnecessary delays.

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