Freedom Mortgage Corporationunethical behavior - miscalculations of funds

T Mar 29, 2018 Review updated:

Good Afternoon,

I am sending this email because I am in desperate need of help. I have had an ongoing problem with Freedom Mortgage for over a year and it is starting to affect my health.

I noticed an increase with my mortgage in 2017. I contacted Freedom Mortgage and was told that there is a shortage in my Escrow account, thus resulting in the increase in my mortgage. After speaking with the Mortgage and the Insurance Departments, we discovered that the shortage was due to Freedom Mortgage paying for flood insurance when my property was no longer considered to be in a flood zone. This letter was sent to me and the Insurance Dept at Freedom Mortgage in 2016. Your insurance department also have this letter on file.

Although we were able to identify the problem, the Escrow Department insisted that I live in a flood zone and their analysis is correct. I escalated this problem to numerous people. I worked with your escalation department and a manager who works out of California. Her name is Karen and if I am not mistaken, her ID number is 8141. Karen was very helpful at first and contacted the flood insurance company, then advised that I will receive a refund from the flood insurance company and once that check is received, I should take the funds to pay for the shortage. To date, I still have not received any funds from the flood insurance company.

Whenever I would contact the Flood Insurance Company, they tell me I need to contact Freedom Mortgage because I no longer have flood insurance. I dealt with this problem for months, then I was impacted by the Hurricane in September 2017 and was consumed with taking care of the damages with my home. I also knew that Freedom Mortgage was going to do another Escrow Analysis at the end of the year and thought that since they identified the problem with the flood insurance, all would be corrected with the new analysis.

To my surprise, in Jan 2018, my Mortgage increased an additional $100. Prior to 2017 I was paying in the $1500s. In 2017 I was paying in the $1600s, now in 2018 it increased to the $1700.

I called the Mortgage Department to inquire about the increase with my mortgage and why. A rep informed me that there is a shortage in my escrow account in the amount of over $1000. Immediately, I knew something was wrong and asked her to please look at he escrow analysis for 2018 and let me know if it included flood insurance and she said yes.

I literally felt like I was having a heart attack and all I could do was cry. I do not live in a flood zone. Your insurance department has confirmed on numerous occassions that I do not live in a flood zone, however the Escrow Department insists on allocating funds for flood, thus resulting in a shortage in my escrow account and an increase in my mortgage. I am a single mother and have been struggling to make my mortgage payments every month. It is unfair to me to have to keep paying an increased payment month over month when the escrow department refuses to communicate with the insurance department.

I spoke with a mortgage rep 2 weeks ago and he was very nice. He escalated my case to a manager and advised that he will email Karen as well because she previously assisted me. He instructed me to hold off on making the payment for the month of March and to wait until the end of March because it was his hope that a new escrow analysis would have been conducted by then to reflect my new mortgage payment. Please note, it has been more than 2 weeks and I still have not received a phone call from a manager.

I received a call last night from Freedom Mortgage Customer Service Rep requesting payment for the mortgage. I advised the rep of the situation and asked him to look at the notes. The rep mentioned that a new escrow analysis was done recently and it clearly states that I live in a flood zone and I have to pay the $1700 plus per month. I immediately had a panic attack.

I called your insurance department and the rep was so upset. She said Miss Phillip, you do not live in a flood zone and the Escrow Department should not allocate funds for that. Now, they are telling the wrong person because I already know that; however this is ongoing since 2017 and I do not understand why the Escrow Department refuses to speak with your Insurance Department.

I am begging you to please help me. This is unfair to me and I am not getting any help. Could you imagine going through this for an entire year and paying an increased price for mortgage when the Escrow Department refuses to correct their wrong? Who holds the escrow department accountable?

I am on the end of losing my home because I cannot afford these payments. I am pleading with you to please help me. I am so depressed and drained with this ongoing problem.

Thank you for your time with resolving this matter.

Teshanne Phillip
Loan Number [protected]

Thank you


  • Jo
    John Beins Sep 11, 2018

    Hi, My name is John Beins. I am an attorney outside of Washington D.C. I am investigating Freedom Mortgage's business practices on behalf of a number of unhappy homeowners. I would be interested in learning more about your problems with Freedom Mortgage. Please call my office at 240-235-5040 or email me at [email protected]

    0 Votes
  • Tr
    truelywrong Jan 15, 2019

    @John Beins I am happy to see that some one is investigating them, I am so angry how they have treated my mother!

    0 Votes

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