Freedom Mortgage
Mortgage Foreclosure Defense with Freedom Mortgage
Are you behind on your mortgage payments and facing foreclosure from Freedom Mortgage?
Being under the threat of foreclosure can be confusing and frustrating.
Have any of the following happened to you:
1. Freedom Mortgage has filed a foreclosure complaint against you
2. Freedom Mortgage has refused to offer you a loan modification or denied you for home retention loss mitigation options
3. Freedom Mortgage has initiated letters from lawyers and/or a foreclosure complaint while you were being reviewed for loss mitigation options
4. Freedom Mortgage has threatened to initiate foreclosure proceedings if you do not bring the loan current
5. Freedom Mortgage has refused to accept mortgage payments or offer you a repayment plan or reinstatement of your loan
Dealing with Freedom Mortgage on your own can be confusing and difficult. We can help to demystify the process and make sure that your rights are protected throughout the process.
About Freedom Mortgage
Freedom Mortgage Corporation is a residential mortgage originator and servicer that specializes in working with loans that are in default. They are the 5th Freedom Mortgage is the fifth largest agency mortgage-backed securities (MBS) mortgage servicer in the U.S., according to Inside Mortgage Finance (IMF) magazine (2021) and has grown its total servicing portfolio by more than 105 percent over the past four years to $381 billion in unpaid principal balance.
Freedom Mortgage is one of the largest mortgage companies in the Country, serving over 1 million homeowners, and is the largest VA and FHA lender in the United States. Freedom Mortgage participates in the FHA STAR Program, which is a performance management program restricted to a handful of companies across the country that demonstrate excellence in mortgage servicing and their ability to assist homeowners.
Freedom Mortgage is headquartered in Mount Laurel, NJ, was founded in 1990 and has over 5,000 employees.
Stanley C. Middleman is the CEO and Stan Moskowitz is the CFO.
Biographies of C-Suite Executives
Stanley C. Middleman
Stanley C. Middleman is the founder and Chief Executive Officer of Freedom Mortgage Corporation, the nation’s sixth largest mortgage lender, headquartered in Boca Raton, FL. Freedom Mortgage has been in business since 1990, offering wholesale, retail, commercial, correspondent and servicing operations.
In addition to leading Freedom Mortgage, Mr. Middleman is an active member of the Mortgage Bankers Association. Mr. Middleman has served on numerous advisory boards, including Freddie Mac from 2002 to 2010, Ellie Mae, Inc. (a provider of business automation software for the U.S. mortgage industry) from 2000 to 2001, and Fannie Mae from 2005 to 2006. He has over 30 years’ experience in the financial services industry and is a graduate of Temple University with a BS in Accounting. He started his career as a mortgage broker.
A 2021 interview with Stanley C. Middleman by Malena Lopez-Sotelo can be heard here.
CFPB Complaint Activity
In 2021, the Consumer Financial Protection Bureau fielded 760 complaints about Freedom Mortgage loans. The most common complaints involved trouble during the payment process and applying for a mortgage.
Applying for Loss Mitigation with Freedom Mortgage
Freedom Mortgage’s Loss Mitigation Page is here – Loss Mitigation Assistance
- Freedom Mortgage has a Loss Mitigation Portal to upload documents
- Freedom Mortgage uses LoanServ Account Connect to provide a self-service borrower portal for accessing loan information and uploading loss mitigation documents.
The following documentation may be required during the process:
- IRS Form 4506-T
- Borrower(s) Financial Report
- Hardship Letter
- Brief explanation of reason for the hardship (such as: illness or job loss) – signed and dated
- Income Documentation:
- Hourly/Salaried Employees – all full and part-time jobs
- Most recent pay stubs for the past (30) days including year-to-date income
- Checking and savings account statements for the past (2) months – include all pages
- Most recent Tax Returns that are complete with all schedules and attachments (W-2’s and/or 1099’s)
- Self-Employed:
- A current year profit and loss statement – signed and dated
- Checking and savings account statements for the past (2) months, both personal and business – include all pages
- Most recent business tax returns that are complete with all schedules and attachments (W-2’s and/or 1099’s)
- Other Household Income (if applicable) – In addition to the above:
- Non-borrower contribution – notarized letter of contribution amount along with proof of their income. Please see above the Income Documentation section to supply this proof of income.
- For household members who have other income (such as: Social Security/pension, rental leases, disability, death benefits/annuity, unemployment or food stamp income), please provide a copy of the benefit statement(s), which includes the amount, frequency and duration of this benefit.
- Alimony, separate maintenance and/or child support payments (note: this income need not be revealed if you do not wish to have this source of income considered). If you choose to have it considered, please provide a copy of the divorce/separation or any other agreement that states the amount, frequency and duration of these payments.
- Hourly/Salaried Employees – all full and part-time jobs
- If you wish to sell the property, you will also need to provide:
- Copy of the Listing Agreement
- Copy of the Sales Contract (if available)
- Copy of the Estimated Settlement Statement (if available)
- Signed Third Party Authorization Form
Social Channels
Recent Acquisitions and Divestitures
In 2022, Freedom Mortgage sold RoundPoint Mortgage Servicing Corp. to Matrix Financial Services Corp. (a wholly owned subsidiary of Two Harbors Investment Corp.).
In 2019, Freedom Mortgage acquired RoundPoint Mortgage Servicing Corp. increasing its loan portfolio to over $300bn.
In 2017, Freedom Mortgage acquired New York Community Bank, acquiring over $20bn of servicing rights.
Mortgage Servicer Abuses, Fines & Penalties
· Freedom Mortgage Reaches $2.7 Million Settlement Over Unnecessary Home Visit Allegations. The class action claimed that the Lender scheduled and charged for unnecessary home inspections, wherein the lead class plaintiffs experienced 4 such inspection visits during a short timeframe while the homeowners were in active conduct with the Servicer about their loan. Affected homeowners complained of the intrusion into their privacy and the $15 fee, while Freedom Mortgage claimed that it was simply doing proper due diligence and scheduled the inspections for its “peace of mind.” There were 74,196 class members involved in the lawsuit.
· CFPB: Freedom Mortgage fined $1.75M for intentionally reporting inaccurate HMDA data. Between 2014 and 2017, Freedom Mortgage provided “inaccurate race, ethnicity, and sex information” in regulatory disclosures. Freedom Mortgage’s proprietary computer system called Lakewood would “hard stop” if this information was missing, so loan officers would enter non-Hispanic/White by default. About 125 of 430 loan applications sampled had this error, where the demographic information was not captured.
· South Jersey mortgage bank pays $113M to settle False Claims Act violations. The article details several claims including that Freedom Mortgage, between Jan. 1, 2006, and Dec. 31, 2011, certified mortgage loans for FHA (Federal Housing Administration) insurance that did not meet U.S. Department of Housing and Urban Development underwriting requirements and were therefore not eligible for FHA mortgage insurance. The article details the result in a $113 Million settlement.
Major Legal Cases
This is a case under New York law. In New York, an action to foreclose a mortgage is governed by a six-year statute of limitations. CPLR 213(4). See also Fed. Nat. Mort. Assoc. v. Schmitt, 172 A.D.3d 1324, 1325 (2nd Dep’t 2019); Deutsche Bank Nat. Trust Co. v. Blank, 189 A.D.3d 1678, 1679 (2nd Dep’t 2020). Most mortgages, however, provide that a mortgagee may accelerate the entire debt in the event of default. Thus, “the terms of the mortgage may contain an acceleration clause that gives the lender the option to demand due the entire balance of principal and interest upon the occurrence of certain events delineated in the mortgage.” Bank of New York Mellon v. Dieudonne, 171 A.D.3d 34, 37 (2nd Dep’t 2019). Once the mortgagee’s election to accelerate is properly made, “the borrower’s right and obligation to make monthly installments ceased and all sums became immediately due and payable.” Fed. Nat. Mort. Assoc. v. Mebane, 208 A.D.2d 892, 894 (2nd Dep’t 1994). Thus, the statue of limitations begins to run once a lender elects to accelerate the subject loan.
Here, the homeowner claimed that Freedom Mortgage accelerated the mortgage and declared default in 2008 and then initiated foreclosure, but the homeowner worked out a deal with the bank in 2013. The foreclosure was then re-initiated after a fresh default, more than six-years after the initial 2008 election, but Freedom Mortgage claimed that the stipulation of settlement in 2013 “de-accelerated” the debt and started the statute of limitations anew. The Court held that “we are persuaded that, when a bank effectuated an acceleration via the commencement of a foreclosure action, a voluntary discontinuance of that action—i.e., the withdrawal of the complaint—constitutes a revocation of that acceleration.”
Harrell v. Freedom Mortgage Corp., No. 19-1379 (4th Cir. 2020).
Under the Real Estate Settlement and Procedures Act, 12 U.S.C. § 2601 et seq. (“RESPA”) the “servicer” is required to make tax payments on the subject property under 12 U.S.C. § 2605(g). The Court found that the relevant “servicer” is the entity “responsible for servicing” the mortgage when the tax payment is due. § 2605(i)(2). In this case, that made Freedom Mortgage responsible for making tax payments, not the ultimate investor.
In Harrell v. Freedom Mortgage Corp. the case arose because Freedom Mortgage made late tax payments on the borrower’s mortgage account, resulting in an income-tax bill of $895 in late fees. The CFPB filed an amicus brief arguing that it is important that the party the consumer is in contact with and who handles the mortgagor’s payments to the bank is responsible and accountable for any payments, missed payments, or fees handled by them.
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