Freedom Mortgage is a privately held nonbank mortgage loan originator and servicer headquartered in Boca Raton, Florida. It is the third largest mortgage lender in the United States by origination volume.
Freedom Mortgage has been involved in a number of lawsuits in recent years, including:
- CFPB lawsuit for providing false information to federal regulators
In October 2023, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit in federal court alleging that Freedom Mortgage submitted legally-required mortgage loan data that was riddled with errors. The CFPB alleges that Freedom’s practices violate both the Home Mortgage Disclosure Act (HMDA) and a 2019 consent order.
- CFPB fine for paying illegal kickbacks
In August 2023, the CFPB fined Freedom Mortgage $1.75 million for paying illegal kickbacks to real estate brokers and agents in exchange for mortgage loan referrals.
- Class action lawsuit over convenience fees
In July 2023, a jury awarded $22.6 million to LoanCare, a mortgage servicer, in a lawsuit against Freedom Mortgage over convenience fees. LoanCare alleged that Freedom Mortgage had improperly charged convenience fees to borrowers who made mortgage payments by telephone or the internet.
What does this mean for Freedom Mortgage borrowers?
The CFPB lawsuit is still ongoing, so it is not yet clear what impact it will have on Freedom Mortgage borrowers. However, the CFPB has a history of obtaining significant relief for consumers in its lawsuits. For example, in 2017, the CFPB obtained a $100 million settlement from Wells Fargo in a lawsuit over its predatory lending practices.
If you are a Freedom Mortgage borrower, you should monitor the CFPB lawsuit closely. You may also want to consider contacting a consumer protection attorney to discuss your rights and options.
FAQs:
Q: Is Freedom Mortgage still in business?
A: Yes, Freedom Mortgage is still in business.
Q: What should I do if I am a Freedom Mortgage borrower?
A: You should monitor the CFPB lawsuit closely and consider contacting a consumer protection attorney to discuss your rights and options.
Q: Can I sue Freedom Mortgage?
A: Yes, you may be able to sue Freedom Mortgage if you have been harmed by its actions. However, you should consult with a consumer protection attorney to discuss your specific case.
Q: What is the class action lawsuit against Freedom Mortgage about?
A: The class action lawsuit against Freedom Mortgage is about allegations that Freedom Mortgage improperly charged convenience fees to borrowers who made mortgage payments by telephone or the internet.
Q: What is the status of the class action lawsuit against Freedom Mortgage?
A: The class action lawsuit against Freedom Mortgage is still ongoing.
Q: How can I get a refund for the convenience fees I paid to Freedom Mortgage?
A: If you are a member of the class action lawsuit against Freedom Mortgage, you may be eligible for a refund of the convenience fees you paid. However, you should wait for the outcome of the lawsuit before taking any action.
I hope this article has been helpful. If you have any other questions, please feel free to contact me.
Sources:
- CFPB Sues Repeat Offender Freedom Mortgage Corporation for Providing False Information to Federal Regulators: https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-repeat-offender-freedom-mortgage-corporation-for-providing-false-information-to-federal-regulators/
- CFPB Penalizes Freedom Mortgage and Realty Connect for Illegal Kickbacks: https://www.consumerfinance.gov/about-us/newsroom/cfpb-penalizes-freedom-mortgage-and-realty-connect-for-illegal-kickbacks/
- Freedom Mortgage Corporation – Consumer Financial Protection Bureau: https://www.consumerfinance.gov/enforcement/actions/freedom-mortgage-corporation/
- Freedom Convenience Fees: https://www.freedomconveniencefees.com/
- www.consumerfinance.gov/about-us/newsroom/cfpb-sues-repeat-offender-freedom-mortgage-corporation-for-providing-false-information-to-federal-regulators/#:~:text=WASHINGTON%2C%20D.C.%20%E2%80%93%20The%20Consumer%20Financial,kickbacks%20for%20mortgage%20loan%20referrals.