Consumer complaint received 2024-11-04 00:00:00
Product: Mortgage — VA mortgage
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Freedom Mortgage Company
State: TX

Complaint narrative:
This is a new issue. This complaint specifically addresses Freedom Mortgage 's current actions. They have refused to correct their credit bureau reporting of inaccurate late payments from XXXX to XX/XX/XXXX. They inflated the amount of time marked as late, although this is disputed. They prematurely removed my VA-backed mortgage from CARES Act protections, and on the first statement they sent me post-forbearance, they indicated I was already 30 days behind and then reported to the credit bureau that I was 60 days behind. 

These protections were intended to ensure a transition out of forbearance without penalizing borrowers, even before the first payment was due. However, from my very first statement after HAF funds were received and after exiting the loss mitigation program, I was reported as 30 days late. I received a statement showing a past-due balance of one month, while they reported both 60- and 30-day lates to the credit bureau. 

Freedom Mortgage has not only inaccurately reported seven alleged late payments from XXXX but has also exaggerated the length of the claimed delinquency to credit bureaus from XXXX XXXX XXXX XXXX This misrepresentation has impacted my credit profile and does not reflect my actual payment history. 

The issue stems from their own incorrect statements starting with the first one post-forbearance issued on XX/XX/XXXXXXXX XXXX XXXX In fact, they have intentionally reported to the credit bureaus that they have no data for XX/XX/XXXXXXXX XXXX This is directly related to their decision to delete payments made timely. 

Notably, Freedom Mortgage 's reporting is inconsistent and contradictory. In their " payments made '' section, they indicate that I have paid the amount owed up until XX/XX/XXXX. However, they simultaneously report the account as delinquent with 30, 60, and 90-day late marks. I have documented this erroneous and contradictory reporting across all three credit bureaus with a screenshot. The only consistent element in their reporting is the claim of having no data for XX/XX/XXXXXXXX XXXX This is significant because XX/XX/XXXX marks the month when they first removed both " Unapplied Funds '' and " Partial Payments Applied - Paid to Date '' from my record, initiating a pattern of reporting my account as perpetually 60 days behind. 

Timeline of Misreported Payments Freedom Mortgages actions have consistently distorted my payment history. Below is the timeline as reflected in my account statements, showing a pattern of erroneous reporting : XXXX XXXX XXXX XXXX  : Statement shows {$0.00} owed. 

XXXXXXXX XXXX XXXX XXXX XXXX First statement with a balance post-forbearance. Indicates that in just 10 days, two months of mortgage payments are due.

Lists one month of Unapplied Funds still available.

Reflects one payment under Partial Payments Applied - Paid to Date, but this is not recorded in the " Balance Due. '' XXXXXXXX XXXX XXXX XXXX : Shows two months of the mortgage as due. 
No payment reflected in the Balance Due amount.

One payment is recorded in the transaction activity.

Records of both " Unapplied Funds '' on reserve and " Partial Payments Applied - Paid To Date '' have disappeared from the record, erasing any trace of two months ' worth of payments from the official record and creating a discrepancy between what was paid and whats being reported. 
This is the month that they have consistently reported to the credit bureaus that they have NO XXXX. 
XXXX XXXX XXXX XXXX  : Statement now shows three months due, with no history of any applied payments in the balance due.

No record of the " Unapplied Funds '' or " Partial Payments Applied - Paid to Date '' are listed or applied to reduce the balance. 
Late fees are added. 
XXXXXXXX XXXX XXXX  : Statement shows three months due.

Payment is not included in the balance due amount.

The transaction activity reflects one months payment. 
No record of the " Unapplied Funds '' or " Partial Payments Applied - Paid to Date '' are listed or applied to reduce the balance. 
This pattern demonstrates a clear attempt by Freedom Mortgage to misrepresent my payment history and create artificial delinquencies. 

Freedom Mortgage has mishandled payment reporting, recording payments in transaction activity but failing to include them in the balance due. They later reversed the late fees but refused to acknowledge the Unapplied Funds or the Partial Payments Applied to Date, which would cover two months of mortgage payments but decided to still report these missing payments to the credit bureau. 

Freedom Mortgage also retroactively altered statements, erasing past payment history. On a recent statement, the Recent Account History section reads as follows : Payment due XX/XX/XXXX : Fully paid on XX/XX/XXXX Payment due XX/XX/XXXXXXXX XXXX  Fully paid on time Payment due XX/XX/XXXX : Fully paid on XX/XX/XXXX Payment due XX/XX/XXXX : Unpaid balance of {$83.00} Payment due XX/XX/XXXX : Unpaid balance of {$2000.00} Payment due XX/XX/XXXXXXXX  : Unpaid balance of {$2100.00} However, the statements issued on XX/XX/XXXXXXXX XXXX XXXXXX/XX/XXXX, and XX/XX/XXXX do not reflect this payment history : No statement was issued on XX/XX/XXXX with a due date of XX/XX/XXXX, which is standard. 
Instead, an XX/XX/XXXX statement claimed two months were due on XX/XX/XXXX, creating an artificial delinquency. 
Contradictory entries show payments as " fully paid '' on XX/XX/XXXX, yet with an unpaid balance for the same period. 
The statement dated XX/XX/XXXX shows two months due, even though only one months mortgage payment was actually outstanding on XX/XX/XXXX. 
This inflated delinquency has been reported to credit bureaus, which severely distorts my payment history. 

Exaggeration of Late Payments and VA Protections Freedom Mortgage then reported to credit bureaus based solely on inflated amounts shown in their statements, disregarding accurate transaction activity that reflects my actual payments. To worsen the impact, they exaggerated the severity of late payments by reporting 60-day late payments for months that should have been, at most, 30 days late, if at all. 

This occurred while my VA-backed mortgage should have been protected under VA guidelines during post-forbearance. Freedom Mortgage has blatantly ignored these protections, compromising my financial standing and credit history. 

These actions followed a series of prior errors by Freedom Mortgage, beginning with an erroneous foreclosure marking and mishandling of Homeowner Assistance Fund ( HAF ) funds. After accepting my HAF funds, Freedom Mortgage retroactively charged foreclosure fees for services that were never rendered. 

In my direct inquiries with XXXX, XXXX XXXX XXXX, XXXX XXXX firm Freedom Mortgage said was assigned to handle my foreclosurethe firm confirmed that they never received my file or conducted any foreclosure-related work on behalf of Freedom Mortgage because Freedom Mortgage canceled the request before they even received my file. Likewise, an appraiser confirmed on XX/XX/XXXX that Freedom Mortgage had canceled the appraisal without billing for any services. 

Despite no foreclosure services being rendered, Freedom Mortgage retroactively applied {$770.00} in fees after receiving my HAF funds, which led to a deficit amount in my Unapplied funds which impacted my expected month of coverage. I was always i in compliance with the loss mitigation program, yet Freedom Mortgage erroneously marked me as non-compliant, a status they later acknowledged as incorrect. 

Despite my consistent compliance, Freedom Mortgage 's repeated errorssuch as deleting unapplied funds, issuing contradictory statements, and imposing retroactive feeshave led to an ongoing and distorted representation of my payment history. 

Freedom Mortgage compounded this by reporting exaggerated delinquency timelines to the credit bureaus, disregarding the CARES Act protections that should have shielded my VA-backed mortgage. This complaint specifically addresses these recent actions, including their refusal to correct inaccurately reported late payments and the premature removal of my mortgage from protections due under VA guidelines as of XX/XX/XXXX. These actions have severely and unfairly impacted my credit profile, fabricating a delinquency history from XXXX to XX/XX/XXXXXXXX XXXX 

Freedom Mortgage continues to report an inflated delinquency timeline to the credit bureaus, further harming my financial standing. This persistent pattern of mismanagement, inflated charges, and inaccurate reporting violates VA post-forbearance protections.

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