Consumer complaint received 2026-06-12 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: IL

Complaint narrative:
Company : Freedom Mortgage Issue : Failure to Release Insurance Claim Proceeds ; Loss and Mishandling of Claim Records Following System Transition Borrowers : XXXX XXXX and XXXX XXXX Property Address : XXXX XXXX XXXX XXXX XXXX, IL XXXX Loan Number : XXXX Complaint Narrative I am filing this complaint against Freedom Mortgage for failing to release insurance claim proceeds despite full satisfaction of all requirements, and for ongoing mishandling of my claim following an internal system transition. My property sustained a covered loss in XX/XX/XXXX. The repair process was fully completed. The final inspection was received by Freedom Mortgage on XX/XX/XXXX, and on XX/XX/XXXX, the final lien waiver from XXXX was submitted confirming there are no liens on the property. At that point, all conditions required for disbursement were satisfied. Freedom Mortgage currently owes approximately {$56000.00}. Freedom Mortgage issued a notice titled Temporary Pause in Loss Draft Disbursement Due to System Upgrade, stating that disbursements would be unavailable from XX/XX/XXXX through XX/XX/XXXX. However : All borrower requirements were satisfied before this blackout period began. Freedom Mortgage had time to process and release funds prior to XX/XX/XXXX but failed to do so. The notice itself was received after the transition had already occurred, leaving no ability to prepare or confirm that records were preserved. Since this system conversion, Freedom Mortgage has experienced significant failures : Previously submitted claim documents and claim history were no longer accessible. My claim file effectively disappeared from the system. Freedom Mortgage has treated previously submitted documents as newly received due to its own system migration issues. Claim information that had previously been available became inaccessible through the customer portal. Despite escalating the issue on XX/XX/XXXX, with a promised resolution timeframe of approximately 35 business days, no action was taken. During a recorded telephone call on XX/XX/XXXX, Freedom Mortgage representatives acknowledged that documents existed in the prior system but had not yet been transferred into the new system. Representatives stated that the delay was related to the company 's system migration and advised that the matter would be expedited. After receiving no funds and no meaningful update, I contacted Freedom Mortgage again on XX/XX/XXXX. During that recorded call, a Freedom Mortgage representative reviewed the claim and confirmed : The inspection reflected 100 % completion of repairs. No additional inspections were required. No additional documentation was required. Approximately {$56000.00} remained to be released. A request would be submitted to release the funds. The funds would be processed within approximately 45 business days and then sent via XXXX. As of XX/XX/XXXX : No check has been issued. No communication has been provided regarding an actual disbursement date. No tracking information has been provided. During a telephone call on XX/XX/XXXX, Freedom Mortgage again confirmed that all required documentation had been received and acknowledged that no additional borrower action was required. Freedom Mortgage nevertheless advised that the claim had still not been fully loaded into its new system and stated that this continued system issue was preventing release of the remaining insurance proceeds. This explanation was provided despite prior representations on XX/XX/XXXX that repairs were 100 % complete, no additional inspections or documentation were required, approximately {$56000.00} remained to be released, and a request had been submitted to release the funds within approximately 45 business days. Additionally, the system remains unreliable and incomplete : Documents are reappearing in the portal only as partial uploads ( for example, only the first page of multi-page records ). Inspection reports are incomplete, with only partial records visible. The system shows document statuses as in progress even though inspections were completed months ago. I no longer have access to the full inspection report that was previously available, despite knowing from prior review and the actual condition of the home that the work is complete. This creates a situation where completed work is effectively being represented as incomplete due to system limitations, and critical claim records have not been fully or accurately restored. Freedom Mortgage continues to cite its system transition and document migration process as the reason for delays. However : All borrower obligations were completed before the blackout period began. Freedom Mortgage has repeatedly acknowledged receipt of the required documentation. The blackout window was disclosed as XXXX XXXX XXXX XXXXXXXX, yet delays continue well beyond that period. On XX/XX/XXXX, Freedom Mortgage confirmed that repairs were 100 % complete, no further inspections were required, no further documentation was required, and that funds would be requested for release. On XX/XX/XXXX, Freedom Mortgage again attributed the delay to its internal system issues and stated that the claim had not yet been fully loaded into the new system. System failures, incomplete document migration, inaccurate record status, and internal processing delays are operational issues within Freedom Mortgage 's control and should not prevent release of funds after all borrower requirements have been satisfied. These circumstances have resulted in the continued withholding of insurance proceeds despite completion of repairs and satisfaction of all stated claim requirements. Closing Statement Freedom Mortgage has repeatedly confirmed receipt of the required documentation and has repeatedly represented that the claim was complete and ready for disbursement. Despite those representations, the funds have not been released. The only explanation consistently provided for the delay has been Freedom Mortgage 's internal system conversion and migration of claim records. These are matters entirely outside the borrower 's control. The continued withholding of funds under these circumstances raises serious concerns regarding the handling of insurance proceeds after all stated borrower requirements have been satisfied. I respectfully request assistance in obtaining prompt release of the remaining insurance proceeds and a written explanation regarding the continued delay.

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