I purchased my home and Freedom Mortgage carried the note until summer of 2020. Freedom Mortgage contacted me and offered a refinance due to lower rates. The refi closed in mid-June which led to the July payment being removed and August being the first payment due. I was never late on any payments as I had an ACH payment scheduled during 2019/2020. Freedom Mortgage cancelled the ACH payment schedule after the refinance but did not inform me. The August mortgage payment was missed because of this. I should have been more diligent but also feel Freedom Mortgage should have informed me they cancelled a long-standing ACH schedule.
I received a late notice from Freedom Mortgage in early September (before the September payment was due). Upon learning of the cancelled ACH, I reset the ACH schedule and paid the August and September payments, including late fees for August. This payment was done the next day after being notified of the issue. The Freedom Mortgage Service Center representative suggested I submit this issue in writing. The representative stated the account should have been placed on hold when the 1 Aug payment was missed. He also informed me the late fee and actions taken with a negative impact on my credit rating should not have occurred in accordance with Federal Law. After the phone call, I looked up the FDIC website and found he was referring to 12 C.F.R. § 1024. The management of Freedom Mortgage agreed this should not have happened but when queried by the credit reporting agencies, they continued their stance and I am left with no recourse against this. I will refi and drop Freedom Mortgage at the first opportunity while informing everyone I can to avoid this company.