Freedom Mortgage Servicing Investigation

Migliaccio & Rathod LLP is investigating Freedom Mortgage for potentially unlawful and deceptive servicing practices affecting homeowners across the country. Freedom Mortgage is the fifth largest residential mortgage loan servicer that manages home loans for borrowers across the United States. Customers have complained that the company may be violating federal and state consumer protection laws through deceptive loan practices, unauthorized charges, and inadequate borrower communication.

Borrowers have reported a range of concerning issues, including:

  • Suspension or misapplication of valid payments: Freedom Mortgage reportedly improperly used suspense accounts, misapplying borrower’s payments or completely failed to apply payments, even when full payment amounts were submitted on time. In some instances, payments that were received were held without being credited and reflected on borrower statements, while others were rejected due to allegedly insufficient funds despite no shortfall.
  • Inconsistent and confusing mortgage statements: Borrowers received multiple, conflicting statements in the same billing cycle, some reflecting as many as 3 to 6 unexplained payments. These discrepancies made it difficult for homeowners to track balances or understand how their payments were applied.
  • Misapplication of overpayments and interest: Overpayments made toward the loan were applied to interest rather than reducing the principal. In one case, a borrower was enrolled in an interest rate reduction program based on timely payments—but the rate was never adjusted as promised.
  • Charges for unauthorized or unexplained property inspections: Freedom Mortgage continued to assess fees for property inspections that were not authorized and without providing justification for the charges.
  • Unauthorized loan activity: One homeowner discovered that a second mortgage loan appeared on their account without their consent or knowledge, raising serious questions about loan document authenticity and borrower authorization.
  • Failure to honor or convert verbal agreements to writing, and poor communication: Freedom Mortgage reportedly modified key terms of the mortgage based on a verbal agreement, only to later deny that such an agreement existed. Repeated efforts to obtain clear information or resolution were met with inconsistent and conflicting responses from the company.
  • Pay-to-pay fees and uncredited service charges: Freedom Mortgage charged $15 for phone payments but reportedly later claimed non-payment, despite the borrower mailing checks that were never applied to the account. Aside from being unnecessary, charging borrowers $15 for phone payments is excessive.

Have You Experienced Irregularities with Freedom Mortgage?

If your mortgage is or was serviced by Freedom Mortgage and you’ve encountered issues such as unexplained fees, payment misapplication, or unauthorized changes to your loan, we would like to hear from you. You may have a valid legal claim.

Please complete the questionnaire below. For more information, contact us at info@classlawdc.com or call (202) 470-3520.

We offer free, confidential consultations and are actively collecting information from borrowers nationwide.