Freedom Mortgage Class Action Settlement Overview:
- Who: Freedom Mortgage Corporation reached a $2.7 million settlement agreement with lead plaintiffs Brandy and Michael Gress.
- Why: The Gresses filed a class action lawsuit against Freedom alleging the company scheduled and charged consumers for unnecessary home inspections.
- Where: The class action lawsuit was filed in Pennsylvania federal court.
Freedom Mortgage Corp. has agreed to a $2.7 million settlement over a class action lawsuit alleging the mortgage lender scheduled and charged for unnecessary home inspections.
Lead plaintiffs Brandy and Michael Gress claimed Freedom sent inspectors to their house on four separate occasions to make sure it was still occupied and being maintained, despite the couple being in regular contact with the company.
The Greeses claimed the inspections were scheduled automatically and subsequent reports were read by a computer system. Freedom has denied the allegations, according to the brief.
The class action lawsuit was filed against Freedom on behalf of tens of thousands of consumers who had at least one unscheduled visit from the company. Freedom maintains it hasn’t committed any wrongdoing and argued it had a contractual right to order inspections on the properties of borrowers.
Freedom charged $15 per home visit, according to the brief, which claims the inspections were done solely for the mortgage lender’s “peace of mind.”
“Repeat property inspections, where a property is already known to be occupied, are a waste of money, a breach of the terms of a standard mortgage, and a practice constituting consumer fraud,” states the brief.
A motion by Freedom to dismiss the class action lawsuit was previously dismissed and an interlocutory appeal that made it to the Third Circuit failed to reach some of the issues the company raised, according to the brief.
The proposed $2.7 million settlement would pay a total of 74,196 Class Members in 11 states a 35% refund for their first charged visit and an additional 50% refund for every subsequent follow up visit, according to the brief, which listed the top estimated payout to be around $625.
Freedom was also on the receiving end of a class action lawsuit filed in 2019 that alleged the company charged customers unfair fees for online or over the phone transactions.
Have you received an unnecessary home inspection from Freedom Mortgage? Let us know in the comments!
The plaintiffs are represented by D. Greg Blankenship, Todd S. Garber, and Bradley F. Silverman of Finkelstein Blankinship Frei-Peterson & Garber LLP, Matthew D. Schultz and William F. Cash III of Levin Papantonio Rafferty Proctor Buchanan O’Brien Barr & Mougey PA, and Gary F. Lynch of Carlson Lynch LLP.
The Freedom Mortgage Class Action Lawsuit is Gress, et al. v. Freedom Mortgage Corp., Case No. 1:19-cv-00375, in the U.S. District Court for the Middle District of Pennsylvania.
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58 thoughts onFreedom Mortgage Reaches $2.7 Million Settlement Over Unnecessary Home Visit Allegations
FM is a horrible company my loan was transferred to them and the nightmare started about 2018 I started getting letters about a shortage in my escrow account and a few months later my mortgage went up, I paid my bills online, and through my bank accounts I would call and never get an answer from the customer service department they just kept transferring to other departments. I sold my home in March of 2020 and my escrow was supposed to close on March 4, 2020 FM did not take care of my mortgage and put my account late for 4 months destroying my credit, I am still trying to recover from the damage they have created in my life. This mortgage company refuses to put the right information on my credit report. I hope they are close down to stop them from hurting hard-working families.
We have the same issue, they keep saying we have an escrow shortage but the numbers don’t match up, this is the third year of this. The first year I spent hours going over the numbers called them and the representative just talked in circles. I am so upset but don’t know what to do.
Freedom Mortgage has put our home in foreclosure twice now! The first time they took the total amount of forbearance and demanded a one time payment of $60,132! 11 days before the actual first payment was due on Seafter the forbearance! The second time was after I called them in March of 2022 to let them know that the payment would be late due to the fact our checking account was frozen. I called in a payment and they did nothing with it, and then the next thing they did was put the house in forbearance the second time! I am looking to file a class action lawsuit! I am a 40-year Army Veteran who is 100% disabled and supposedly Freedom Mortgage is one of the largest VA Mortgage Companies that doesn’t seem to take care of Veterans at all! There were supposedly numerous home inspections that they charged $25.00 per inspection; however, we never saw anyone doing these inspections! They should be destroyed by us Veterans for all the bull shit scams they are pulling on us !
I don’t know how my mortgage acct ended up with Freedom Mortgage. Not only they put my house I forbearance, but my balance of $150K owed on my house was suddenly skyrocketed to $180K, the original price of the house. HAF covered their demand of $35,000 they claimed I owed of six months when the house was on forbearance. How the hell my $900 monthly payment totals to $35,000 for a six months forebearance??? Several calls to them to ask why my house balance went back up to $180K when I only owed $150K and why didn’t they subtract the $35,000 from the balance of $150K? They told me the $35,000check HAF sent to cover the six months forebearance also applied to other charges they refused to tell me. Then they told me I don’t have money in the escrow acct including home inspection charges that never happened!!! I told them I’m a 100% disabled veteran and will NOT pay any escrow being that the purpose of escrow is when clients file income tax, Freesom Mortgage then use the funds from ESCROW acct to pay for these clients property tax where Veterans or those with 100% disability are EXEMPT from being charged escrow acct!! However, month after month they take portion of my mortgage payments and apply to this escrow then charge me for late fees and several other charges adding into this partial payments they claim I owe!!!! At the end of each month that money they took from my mortgage payment disappears from the escrow again charging me late fees and extra charges on my acct increasing my monthly payments oh and by the way they charge for phone calls and every transaction they make on the phone which those charges are going against you under MISCELLANEOUS going towards your bill!!! When asked why they didn’t subtract the $35,000 from my balance they gave me bogus excuses then put on hold then went to someone else where I have to start all over again the aim put on hold and this shit goes round and round until you get the bill of extra charges against you for the minutes on the phone calls you made to FM!!!! I make my own insurance payment to fin out FM also charged me for their insurance and another third party insurance increasing my monthly payments from $900 to a whopping $1600 a month!!! They told me it was NOT up to me to make my own insurance payment that they are in control of my acct and that they cancelled my own insurance with another agency while they pocket my money and made me use their insurance to lock the new monthly payment of $1600 including escrow saying I still have to pay property tax regardless if I’m 100% disabled Veteran!!!! What kind of BS is this???!!! And how did they take over my acct from an agency I had my mortgage with??? They added $30K into my acct from $150K of my balance back to $180K while I’m making payments all over again from the original balance!!! They did NOT subtract the $35,000 check they received from the original $150K balance they pocketed that check and then refused to answer my question of how a six months forebearamce of $900 a month payments could total to $35,000!!! They kept telling me additional charges they won’t explain!!! They are thieves and scammers operating like Wells Fargo creating ghost acts against customers then charge customers on these bogus accts!!! They added $30K into my original balance of $150K racking my new balance on my house back up to $180K to include the $35,000 they charged for the six months my house was on forbearance they never subtracted from the balance and I’m making payments for these funds they pocket!!!!!
This mortgage company is horrible. It all started last year, they claimed we had an escrow shortage, we look at statements to see what they were trying to pay. We had money in the escrow account and then it disappeared. They claimed they had to raise our monthly payment due to increases, which did not happen til a year later. They have sent us numerous packets request personal info, plus they have destroyed my husband’s credit. Now they are trying to foreclosure on our houses without sending any documents to our address, plus charging monthly inspections fees.