Consumer complaint received 2024-12-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Private mortgage insurance (PMI)
Company: Freedom Mortgage Company
State: PA

Complaint narrative:
My escrow was re-evaluated for the year XXXX and the company determined that my monthly private mortgage insurance should increase from {$26.00} per month to {$80.00}. I have called their support line several times asking for this to be resolved. Dates that I have been in contact with them about the issue have been from XX/XX/XXXX through today, XX/XX/XXXX. The first few attempts to resolve the issue I was told that they would " look into it '' but had not heard anything back. I called again on XX/XX/XXXX to ask for an explanation and was told that there were several months where the PMI was not paid so they were making up for those months by increasing the premium now. I requested my entire payment history, which they provided, and it showed that PMI has been paid every month that I have had the loan. I called again today, XX/XX/XXXX to ask for further justification about the rate increase. I was then told today that my mortgage insurance had " just increased due to market conditions. '' I asked what market conditions could justify a 300 % increase year over year in insurance premiums and the response was that insurance just goes up sometimes. I asked for a written justification explaining, in detail, what could cause the rate to increase at this magnitude. I was told that a letter would be sent to my house on XX/XX/XXXX that would explain why the increase was happening. I asked for detailed calculations showing their justification to be emailed to me today, which was declined. I have not taken out any home equity loans- my share of equity has increased since I purchased the home in XXXX. My credit score is also unchanged. I explained this to the representative while again asking for a detailed breakout of the justification of the charges which was again declined, and given a verbal response that mortgage insurance can increase at any time due to " market conditions ''. I do not believe the company, Freedom Mortgage, is operating in good faith. To summarize my experience : when I first inquired about the issue it was ignored ; when I followed up the representative claimed there was a problem with the payment history, which I verified as false ; and when I followed up again a representative told me that insurance just goes up sometimes and would not provide me with a detailed cost breakout to justify the increase. They have verbally said they will provide a letter by XX/XX/XXXX that explains the cause of the increase, but I have yet to see any confirmation via email or on their website that this letter is pending to be sent. They also refused to provide the letter via email, instead dragging out the process another eight days by sending it via mail. By then, I will have paid them XXXX 's payment, which will include this unjustified increase to PMI.

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