Consumer complaint received 2025-03-12 00:00:00
Product: Mortgage — USDA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
I am filing a formal complaint regarding the mishandling of my loss mitigation appeal by Freedom Mortgage for USDA Guaranteed Loan. My concerns are as follows : Mortgage Recovery Advance ( MRA ) Calculation Error & Denial Without a Clear Payment Amount I originally applied for an MRA, but my request was denied because the reinstatement amount of {$42000.00} exceeded USDAs 30 % cap on unpaid principal balance. 
Based on my principal balance of {$130000.00}, the USDA 30 % cap allows for an MRA of up to {$41000.00}. This means the difference required to qualify is only {$460.00}. 
I informed Freedom Mortgage that I am willing and able to pay the required amount to bring the MRA within USDAs limit, but they have refused to provide a clear statement of the amount needed for compliance or allow me to proceed.

USDAs own guidelines allow borrowers to contribute funds to bring an MRA request within eligibility limits, yet my request to do so has been ignored. 
Loss Mitigation Appeal Denied Before 30-Day Review Period I submitted an appeal on XX/XX/year>, and Freedom Mortgage denied my appeal immediately on XX/XX/year>, despite USDAs requirement that servicers provide a full 30-day review period. 
This is a violation of my right to a fair review under USDAs loss mitigation process. 
Failure to Consider a 40-Year Loan Modification as an Alternative Solution USDA  allows loan modifications to extend to 40 years in order to prevent an increase in the borrowers monthly payment.

Freedom Mortgage denied my modification request, citing that it would result in a payment increase, but they have refused to evaluate a XXXX term, which could resolve this issue. 
This is a failure to exhaust all available home retention options, in violation of USDAs servicing rules. 
Foreclosure Process Initiated Despite Active Loss Mitigation Efforts Freedom Mortgage has instructed me to contact the foreclosure attorney, even though I am actively seeking a USDA-approved loss mitigation solution. 
USDA guidelines state that foreclosure should not proceed if the borrower is attempting to cure the default. 
Since I am willing and able to bring the MRA within USDAs guidelines, my loan should not be pushed toward foreclosure. 
Formal Request for USDA Intervention I am requesting that USDA : Direct Freedom Mortgage to provide me with a written statement of the exact amount I need to pay to qualify for the MRA so that I can immediately resolve this issue. 
Require Freedom Mortgage to reconsider my appeal fairly and in compliance with USDAs 30-day review period.

Ensure that Freedom Mortgage evaluates a 40-year loan modification option as required under USDA loss mitigation guidelines. 
Pause any foreclosure activity while I am actively working to cure the default through USDA-approved loss mitigation solutions.

I appreciate your prompt attention to this matter and look forward to your response. Please confirm receipt of this complaint and advise me on the next steps.

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