Consumer complaint received 2025-05-13 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
On XX/XX/XXXX, I purchased a home using a XXXXbacked loan. At closing, the property taxes for XX/XX/XXXX through XX/XX/XXXX, were paid into escrow. In late XXXX, Freedom Mortgage assumed servicing of the loan. 

In early XXXX, Freedom Mortgage refunded the escrowed tax funds to me in error. I did not request this refund. On or around XX/XX/XXXX, I called Freedom Mortgage. The representative admitted their mistake, instructed me to redeposit the funds, and upload the tax bill so they could issue payment. I complied with these instructions and was told that any penalties or fees would be covered. 

On a follow-up call dated XX/XX/XXXX, a different representative reversed the prior guidance, stating they would no longer pay the taxes because I was exempt due to my veteran status. This rationale was inaccurate my property tax exemption applied starting XX/XX/XXXX, and the taxes in question covered XXXX XXXX, prior to my ownership. 

Because Freedom Mortgage refused to pay, I used the refunded funds to personally pay the XXXX property taxes on XX/XX/XXXX, in the amount of {$4700.00}. 

In the weeks following my payment, Freedom Mortgage also submitted their own payment to the tax office in the amount of {$5200.00}, resulting in a possible duplicate tax payment. They have not notified me whether this overage has been resolved, credited, or refunded. 

On XX/XX/XXXX, I had a phone call with Freedom Mortgage. They stated that based on their internal review, I was not exempt from property taxes, and as a result, my monthly mortgage payment would be increased to reflect future tax obligations. They claimed to have called the tax office and verified this non-exempt status. 

That same day ( XX/XX/XXXX ), I went in person to the XXXX XXXX XXXX XXXX XXXX. Within minutes, a tax representative pulled my records and confirmed that my exemption was properly filed and active as of XX/XX/XXXX. This proves Freedom Mortgage either did not verify my exemption as claimed, or misrepresented the outcome. 

Timeline Summary : XX/XX/XXXX Property purchased, escrow funded for XXXX XXXX taxes Early XXXX Escrow funds refunded to me by servicer XX/XX/XXXX Phone call : Freedom Mortgage admits mistake and instructs redeposit XX/XX/XXXX Phone call : Servicer reverses and denies responsibility XX/XX/XXXX I pay {$4700.00} in taxes directly XX/XX/XXXX ( approx. ) Freedom Mortgage also pays {$5200.00} for same taxes XX/XX/XXXX Servicer claims I am not exempt and plans to raise payment XX/XX/XXXX I verify in person at tax office that I am exempt since XX/XX/XXXX As a result of this mishandling, I have experienced : Forced payment of taxes that were the servicers responsibility Duplicate payment exposure Denial of a tax penalty waiver, because the servicer did not act timely Unjustified mortgage increase attempt Emotional distress and administrative hardship The servicers reversal, inaccurate legal interpretation, and miscommunication with the tax authority demonstrate RESPA violations, bad-faith servicing, and negligent handling of a VA-backed loan for a protected veteran borrower.

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