Consumer complaint received 2026-01-20 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Loan estimate or other related disclosures
Company: Freedom Mortgage Company
State: TN

Complaint narrative:
Company : Freedom Mortgage Product : Mortgage refinance Property location : Tennessee I am filing this complaint regarding Freedom Mortgages handling of my refinance application, which involved repeated disclosure errors, misrepresentation of loan costs, a failed scheduled closing, refusal to provide a payoff statement, inaccurate statements regarding credit inquiries, and resulting financial and credit harm. 

In XX/XX/XXXX, I spoke by phone with Freedom Mortgage representative XXXX XXXX, who explicitly represented that this refinance would be a {$0.00} cost loan. During that conversation, and repeatedly afterward both verbally and in writing, I clearly stated that under no circumstances did I want any fees added to my loan balance. I expressly told Freedom Mortgage that if there were any fees associated with the refinance, I would bring cash to closing instead.

Freedom Mortgage later included fees associated with the refinance by rolling them into the principal balance of the loan, contrary to what was represented. These fees were not transparently disclosed as being added to my loan balance and were effectively hidden within the loan structure. This directly contradicts the {$0.00} cost representation made by Freedom Mortgage and ultimately my repeated instructions that fees were not to be financed.

My refinance application then extended for nearly three months and was repeatedly delayed due to incorrect loan figures provided by Freedom Mortgage.
Despite numerous communications, the lender failed to provide a clear explanation for these discrepancies. A closing was ultimately scheduled for XX/XX/XXXX. 

On XX/XX/XXXX, at XXXXXXXX XXXX I was verbally informed that my loan amount would be {$190000.00} and that my required cash to close would be {$730.00}. However, I was never provided Closing Disclosures for review or acknowledgment prior to the scheduled closing. The title company/closing agent did not receive the Closing Disclosures until approximately XXXXXXXX XXXX on XX/XX/XXXX, the day of the scheduled closing. The documents presented at closing contained materially different figures than those previously represented to me on XX/XX/XXXX, and the closing could not proceed. The closing agent had not been provided with any point of contact or contact information for the lender and could not reach out to attempt a correction.

Because the closing failed due to Freedom Mortgages errors, my rate lock expired on XX/XX/XXXX. I was forced to remain in my existing higher-interest loan and incurred additional interest that would not have accrued had the refinance closed as scheduled. I was also forced to pursue financing with a new lender, resulting in an additional hard credit inquiry and a documented credit score decline of approximately 30 points.

After the failed closing, I requested escalation and resolution. Freedom Mortgage did not provide timely or meaningful responses. In subsequent written communication, a Freedom Mortgage representative denied that Freedom Mortgage performed a hard credit inquiry on my credit report. This statement is incorrect. Freedom Mortgage did perform a hard inquiry on my credit report, for which I have documentation. The second inquiry occurred only because Freedom Mortgages failure to close forced me to seek a new lender.

Additionally, Freedom Mortgage refused to provide a payoff statement to my new lender when requested, despite my having provided a signed authorization expressly permitting the release of payoff information. This refusal further delayed my refinance and caused additional financial harm. I believe this refusal violates servicing obligations under Regulation X.

Despite my explicit verbal request to XXXX XXXX that the application be canceled on XX/XX/XXXX at XXXX XXXX XXXX Freedom Mortgage has left the application open and unresolved. The continued existence of this open application has created confusion, prolonged the dispute, and further demonstrates Freedom Mortgages failure to properly service and close out the transaction.

Additionally, after receiving verbal and written confirmation from Freedom Mortgage on XX/XX/XXXX that my ACH payments had been canceled per my request, my bank account was debited {$910.00} on XX/XX/XXXX. When I contacted Freedom Mortgage about this issue, I was told there was nothing they could do. I had to dispute this charge with my bank in order to get have the funds returned. 

Freedom Mortgages conduct reflects misrepresentation of loan costs, failure to provide accurate and timely disclosures, failure to comply with required closing and servicing timelines, inaccurate statements regarding credit inquiries, refusal to provide payoff information after authorization, and failure to properly cancel an application upon request. These actions caused direct financial loss, credit damage, and ongoing emotional and financial harm.

I am requesting that the CFPB review Freedom Mortgages disclosure practices, representations regarding loan costs, servicing conduct, refusal to provide payoff information, handling of credit inquiries, and failure to properly resolve and close my application.

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