Freedom Mortgage Lawsuit Filed Against Freedom Mortgage Corporation
A recent class-action lawsuit against Freedom Mortgage Corporation alleges that it violated federal and state debt collection laws. In the case, lead plaintiffs claimed that they were charged $15 for every time they received a telemarketing call from the company, despite having been on its Do Not Call list for several months. The lawsuit asserts that the practices constituted fraud on consumers and are contrary to the terms of the deed of trust between the lead plaintiffs and the mortgage company.
According to the complaint, the Freedom Mortgage Company sent borrowers a loan modification application and then charged them for three additional property inspections, which they said were unreasonably extensive and inappropriate. The plaintiffs, in turn, say that the company did not follow the law when it asked for a hard credit pull to determine a rate quote. They say this is unfair, misleading, and in violation of their rights. As a result, the case is pending in the U.S. District Court for the Middle District of Pennsylvania.
The Freedom Mortgage lawsuit was filed by David Atis, a mortgage loan professional at the company.
The plaintiff claims that the company violated the Fair Labor Standards Act and the New Jersey Law Against Discrimination. The company falsely classified the mortgage loan professionals as exempt from overtime and did not pay them for working over 40 hours per workweek. The judge granted final approval to the settlement on June 26, 2019. The company has since ceased providing services and has agreed to settle the case.
The lawsuit also accuses Freedom Mortgage Corporation of wrongfully charging thousands of borrowers for unnecessary home inspections, even after the borrowers defaulted. This is illegal and was done while the borrowers were still living in their homes. In some cases, the Freedom Mortgage Corporation allegedly ordered unnecessary home inspections while borrowers were residing in their homes. The company did not provide the required documentation to clients. Therefore, the plaintiffs are seeking compensation for their losses.
The company has denied all the allegations made against it.
It has been cited for violating the TCPA by failing to comply with federal and state laws governing the telemarketing industry. The company’s actions have not been deemed illegal in all jurisdictions. In some, such wrongful acts may constitute civil liability. While there are many instances of fraud in this area, the company has not been found guilty of violating federal and state law.
In this case, the Freedom Mortgage Corporation failed to disclose all of the information required to verify that the clients were military personnel. This is a violation of the California Military and Veterans’ Code 800-811. In addition to these violations, the company failed to provide the borrowers with written disclosures about the deferral of interest and principal. This means that the consumer was a victim of fraud. However, a lawsuit against Freedom Mortgage Corporation is still a necessary way to get justice.
In this case, Freedom Mortgage has agreed to settle all claims and pay $1.75 million to resolve the case.
The company has admitted that it intentionally reported inaccurate information about loan applicants. For example, loan officers were instructed to enter inaccurate information about borrowers to avoid being rejected for a mortgage. As such, they should only enter the correct information. It is also crucial to include the name and address of the lender that the borrower has worked with.
A Freedom Mortgage lawsuit has been filed in federal court in Pennsylvania alleging that the company mistreated thousands of borrowers by ordering home inspections while the borrowers were still living in their homes. Despite several factors, these actions can affect both the lender and the borrower. The plaintiffs have chosen to sue Freedom Mortgage in Harrisburg, Pennsylvania because they believe that the company failed to follow proper lending practices. After all, it is not in their best interests to continue the case without a ruling.
In the lawsuit, the company is alleged to have violated state and federal law by sending borrowers loan modifications without their consent. In addition to the violations of federal law, the company also failed to comply with a federal court order to remove the liens from the borrowers’ homes. Moreover, Freedom Mortgage is a creditor and has the right to deny service to a lender. In this case, a defendant has not paid the borrower.
We were charged $15 per month for inspections when we defaulted on our loan. After Covid they reworked the mortgage, yet kept all inspection and late fees in the total to be paid on the back of the mortgage. It is 18 months worth of fees.
I made a payment in March 2022 that freedom mortgage claims they didn’t receive yet it shows in my bank statement they took it and it has not been returned. They claim they are not receiving any of my information I’ve faxed and sent to the message center. They have ME doing their job, to prove they got it and now 3 months later and thousands of dollars to save my home and they still are charging me fees I don’t know what for, and still fighting to find the payment!
My mortgage was sold to Freedom just wondering if all was done legally
This company is horrible. for us it all started in 2022, they claimed we had an escrow shortage. which there was not one. they raised our mortgage payment. every payment we make is by a bank cashier check, which they hold for 5 or more days. they have hit my husbands credit a number of times dropping his credit score. they have also been sending people to take pictures to make sure someone is still living in the house. now they have filed forclosure on us.