Consumer complaint received 2026-05-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: Freedom Mortgage Company
State: NJ

Complaint narrative:
CFPB My existing Mortgage Company ( Freedom Mortgage ) contacted me in XX/XX/XXXX with an offer to reduce my financing rate by 0.5 % from 6.87 %. They said that I would not have to pay any settlement costs or start the loan over. They said it was an easy process. They offered this because rates were going down, and they did not want me to switch mortgage companies, which was very progressive. However, I was denied multiple times and am still working with them to get approved. My net worth is {$4.00} Million with {$3.00} Million in XXXX and {$1.00} Million in liquid equities. My XXXX self-employed XXXX income was $ XXXX. My mortgage amount is approximately $ XXXX, and I had originally signed with XXXX of XXXX. Freedom Mortgage bought the loan. Just yesterday, I was denied because my condo building did not have coverage for its common-area items, such as couches, wall hangings, and gym equipment. They are working very hard not to honor their offer, which was provided 3 times, because it is " out of the money '' and they would lose money. They have been deceptive and very painful to work with on this approval. In fact, I was approved last month, but then they came back with additional information they wanted me to provide. It has been the worst experience in my life. Here are the details. I have contacted the XXXX and XXXX multiple times without receiving a response. CFPB XXXX XXXX Freedom Mortgage Corporation XXXX : XXXX XXXX XXXX : XXXX XXXX XXXX XXXX Unit XXXX, XXXX XXXX, NJ XXXX Loan Type : Conventional Mortgage ( Fannie Mae ) Company : Freedom Mortgage Corporation ( XXXX # XXXX ) Summary of Complaint Freedom Mortgage engaged in misleading and potentially deceptive practices by proactively soliciting me for an interest rate reduction, representing that the process would be simple, without settlement costs or restarting the mortgage term, and then subjecting me to repeated underwriting reversals, excessive documentation demands, shifting qualification standards, and significant delays inconsistent with their original representations. This process has been ongoing for over XXXX months and has involved multiple loan advisors, repeated restarts of the file, contradictory explanations, and what appears to be selective and inconsistent application of underwriting criteria. XXXX of Events XX/XX/XXXX Freedom Mortgage contacted me directly to offer a reduction in my interest rate from 6.875 % to 6.375 %, with no settlement costs and no restart of the mortgage term. I did not initiate this request it was a proactive solicitation from Freedom as a valued customer. I was assigned to XXXX XXXX ( XXXX # XXXX ). I submitted all requested documentation. Underwriting began requesting unusual occupancy explanations regarding my XXXX apartment ( winter residence ) and my primary New Jersey residence. I fully responded and provided documentation. I was subsequently denied despite : Having the same loan already in place The refinance is reducing my payment No material deterioration in credit or assets No clear explanation was provided to reconcile how I could qualify for the higher payment but not for a lower one. XX/XX/XXXX I was contacted again by a different representative ( XXXX XXXX, then XXXX XXXX ). I restarted the entire process. I was told : Your offer is locked in. The rate reduction program was available. I simply needed to complete electronic signatures. I provided over {$400000.00} in documented XXXX income and substantial asset documentation ( over {$1.00} million in liquid non-retirement funds and significantly more in retirement accounts ). The process again stalled without a clear explanation. XXXX XX/XX/XXXX The file was repeatedly : Restarted Sent to underwriting Sent back for new documentation Expanded into increasingly invasive business documentation requests Requests included : Articles of incorporation Business area of operation Multiple tax transcripts Utility bills to prove occupancy Proof of IRS payment for a tax liability IRA distribution documentation ( despite my request not to use IRA income for qualification ) Additional asset statements Requests to lower the loan amount by {$100000.00} to qualify At XXXX point, I was told that adding {$100000.00} principal might help. Later, I was told it would not materially impact pricing. Then I was told IRA income must be included. The underwriting narrative repeatedly shifted. Key Concerns XXXX. Deceptive Initial Solicitation Freedom contacted me, representing that : The rate reduction would be straightforward. There would be no settlement costs. The term would not restart. In reality, the process became a full requalification refinance with extensive documentation demands far beyond what was represented. This appears to constitute potential deceptive marketing. XXXX. Inconsistent Income Treatment Freedom states my original loan ( originated by XXXX of XXXX ) used a {$17000.00} IRA distribution for qualification. That figure represented a one-time distribution not recurring income. Now, Freedom is : Reinterpreting that prior approval. Denying based on changed income. Selectively requiring certain income sources. Disregarding substantial assets. Changing the qualification method mid-process. I was told : If you had not provided the XXXX tax return, the loan would have been denied. This indicates shifting criteria during the process rather than clear qualification standards upfront. XXXX. Excessive and Repetitive Documentation Demands Even after preliminary underwriting approval, Freedom continued requesting : XXXX XXXX XXXX ( despite an incorrect claim, they could not reach the XXXX ; XXXX XXXX confirms no outreach XXXX XXXX review delays ( XXXX weeks ) Utility billing address verification Tax liability proof IRA distribution confirmation Additional asset statements Business registration documentation Each time conditions were cleared, new conditions appeared. This pattern created significant delay and stress, and appears inconsistent with the original representation of a simple rate reduction. XXXX. Potential Rate Lock and Delay Concerns Freedom acknowledged : The market has increased since XXXX. They needed an exception from a VP to honor the original offer. The prolonged underwriting process coincided with rising rates, and I have concerns that the delays were financially beneficial to Freedom while detrimental to me. XXXX. Pressure and Tone from Sales XXXX In written communication, the Sales XXXX stated : If you do not agree with their guidelines, then bring up the concern with them. This was after I had expressed concerns regarding the inconsistent application of guidelines. The tone and repeated implication that I misunderstood underwriting standards were dismissive and inappropriate, given that Freedom initiated the solicitation. XXXX XXXX XXXX interest paid : approximately {$40000.00} per year. Remaining term : XXXX years. Total future interest exposure : nearly {>= $1,000,000}. Need them to be held accountable for their deceptive practices. I feel like they really wanted to collect data on my excellent financial backing and will resell my mortgage to another company as an XXXX rated mortgage buyer.

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