Consumer complaint received 2025-04-29 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: Freedom Mortgage Company
State: NJ

Complaint narrative:
On XX/XX/year>, I began the process of refinancing my home with Freedom Mortgage. I submitted all documentation promptly, and the appraisal was scheduled for XX/XX/XXXX at XXXX XXXX. On the morning of the appointment, at XXXX XXXX ( less than XXXX hours before ), the appraiser canceled last minute citing illness. This caused significant inconvenience, as I had arranged childcare and pet care to ensure a distraction-free environment for the appraisal. 

The appraisal was rescheduled for XX/XX/XXXX. During the appointment, I provided the appraiser with a detailed document outlining all major upgrades completed since purchasing the home, including a custom gunite pool with spillover spa, a new HVAC system, a new water heater, a new shed, bathroom remodels, and other improvements. I also personally highlighted these upgrades during the walkthrough. 

Despite this, the final appraisal report omitted most of the upgrades, undervalued others, and contained factual errors and missing critical data, resulting in an inappropriately low valuation. 

After receiving the report, I consulted with a licensed realtor and former appraiser in the XXXX XXXX area, who confirmed that the report lacked credibility and did not accurately reflect the property 's fair market value. 

Prior to leaving for vacation the week of XX/XX/XXXX, I submitted a formal Reconsideration of Value ( ROV ) request along with detailed supporting documentation. I received confirmation on XX/XX/XXXX that the ROV had been submitted and would be reviewed within five business days. However, I later learned that the appraiser did not even receive the ROV until XX/XX/XXXX a full week later. Throughout this period, I received no meaningful updates or responses to my multiple inquiries. 

Most concerning, I specifically requested that a different appraiser review the ROV due to serious concerns about the original appraisers professionalism and the quality of the initial report. This request was ignored. The same appraiser was permitted to review her own work, and unsurprisingly, no meaningful corrections were made. 

Today, XX/XX/XXXX, after several phone calls inquiring about the status, I sent an email to the supervisor. Shortly after, I received an abrupt notification that the ROV process was completed and that new disclosures would be generated without providing me a copy of the final report or the ROV findings. The supervisor then called to discuss my concerns, admitted there had been service failures, acknowledged the lack of clear communication to me as the customer, and disclosed that on XX/XX/XXXX the appraiser had requested " more time '' a completely different explanation than what I was previously given by other individuals involved.

Given the circumstances, I have formally withdrawn my refinance application and requested a full refund of the {$400.00} appraisal fee. While the fee is generally considered non-refundable, due to the negligence, inconvenience, professional misconduct, and unethical handling of the process by both the appraiser and Freedom Mortgage, I believe a refund is fully justified.

Freedom Mortgage has refused to take responsibility and is attempting to shift blame to the appraisal management company that they personally selected and hired. Despite the original issues including the last-minute cancellation, inaccurate and incomplete appraisal, and mishandling of the ROV Freedom Mortgage decided to continue the process with the same appraiser against my express wishes.

This entire experience has been extremely XXXX, time-consuming, and unprofessional from beginning to end.

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