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Freedom Mortgage Servicing Irregularities

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Maddog_
Contributor

Freedom Mortgage Servicing Irregularities

Back in January, I got a notice from Roundpoint, my then current mortgage servicer for a Freddie Mac mortgage on my primary residence, that my loan servicing was being transferred to Freedom Mortgage effective February.  Shortly thereafter, I received a ledger/statement from Roundpoint detailing all payments and disbursements on my one-year-old mortgage loan. Subsequently, I received mail from Freedom containing disclosures and general information on the transfer.   I had to look up the payment address for Freedom because they did not provide me a statement, new account number or payment instructions in time to get the first payment to them by the due date.  I used the old Acct. Number and sent the payment to the address I got from the Internet, and fortunately was able to get the payment to them in time.

 

Irregularities I have noticed:

 

1.  The Freedom Mortgage Statements do not show the escrow activity or balance and neither does their online system.  If you want to know the balance of your escrow account you have to call them on the phone.  They tell me over the phone that there is no way to get a document showing activity in my escrow account.   Hey Freedom this is 2016 ya know ?  Is this even legal ?

 

2.  The only way to make payments to them is directly via Freedom debting your bank account (they charge fees in some cases). Or, by mailing them a check.  They do not accept third party direct payments/transfers, except by mail.

 

3.  They are not reporting my mortgage to any of the three major credit bureaus....... And, it has been over five months since they took over 'servicing'.

 

Just so you all know, if your servicing transfers to Freedom, you may very likely experience a downgrade in service level.

 

Its ALL about the money.

 

Be CAREFUL when dealing with this company and maintain detailed notes and records.

 

 

Message 1 of 4
3 REPLIES 3
Appleman
Valued Contributor

Re: Freedom Mortgage Servicing Irregularities

Maddog, thank you for your posts. It is honest reviews such as this that will help other forum members.

 

They don't report to the bureaus? Get late once and I bet they post all over the bureaus.....

 

It really is too bad there is not some metric to ensure that your service will not be downgraded when the mortgage is sold.

Message 2 of 4
Anonymous
Not applicable

Re: Freedom Mortgage Servicing Irregularities

Hi,

Yes, I did my original mortgage with Lennar's financing lender which is UAMC and then the turn around and sell the loan servicing to Freedom Mortgage. We purchased our home in August 2016 and I have yet to see this loan report on our credit report.

Their system seems very outdated. We will eventually look to refinance this loan.
Message 3 of 4
StartingOver10
Moderator Emerita

Re: Freedom Mortgage Servicing Irregularities

That sounds very strange to me.  If you have escrows with the mortgage lender and they are not showing your escrow balances or amounts paid - that is highly risky for the borrower IMO.

 

Have you looked up the requirements under RESPA? I don't know one way or the other if they are allowed to take escrow payments and not report them unless you call. It sounds fishy. There are a few really bad mortgage servicers out there with terrible reputations. I guess I will have to add this one to the list of known bad servicers. 

 

Your remedy to keep detailed records is excellent. 

 

Consider looking up mortgage servicing rules to see what is required. I found one link but haven't reviewed the rules yet:

http://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/2013-real-estate-settlement-...

 

I found a new link.  The rule has been finalized by CFPB as of Aug 2016 and they are required to provide to you a periodic billing statement for each billing cycle (including escrows). Here it is:

http://www.icba.org/files/icbasites/pdfs/icbasummarymortgageservicing.pdf

 

If I were in your shoes, I would first send a letter to the servicer detailing the requirements and asking them to conform to the CFPB requirements within X days (I would allow 30).  If they don't comply, I would complain to the CFPB and be prepared with documentation. 

 

The other option is you can refi out, but that is expensive and you don't know what servicing you will end up with when you do refi out - unless you end up with a portfolio lender that services their own loans. 

Message 4 of 4
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