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  New Jersey OAG. In the matter of Freedom Mortgage Corp.
  

  As of July 11, 2023:

  
  

  Attorney General Matthew J. Platkin and the Division of Consumer
  Affairs announced that a nationwide mortgage provider formerly
  based in New Jersey has agreed to a $502,000 settlement to resolve
  allegations that it violated the state’s consumer protection laws in the
  sale and servicing of mortgages throughout the State and beyond.
  

  
  

  Freedom Mortgage Corp. (“Freedom Mortgage”), which maintained its
  headquarters in Mount Laurel, NJ, for more than a decade before moving
  to Florida in 2022, allegedly bombarded consumers with harassing sales
  calls about loan refinancing, engaged in bait-and-switch sales tactics
  to induce them to refinance their loans, and caused them financial harm
  by repeatedly failing to meet its responsibilities as a loan servicer.

  
  

  The allegations stem from the Division’s review of more than 1,400
  complaints from around the nation, both obtained through the Better
  Business Bureau and filed directly with the Division, involving conduct
  that occurred from January 2015 to June 2022.

  
  

  In a Consent Order, Freedom Mortgage and the Division
  agreed to resolve the allegations and conclude the investigation without
  further action.

  
  

  Under the terms of the settlement, Freedom Mortgage will pay $365,200
  in civil penalties and $136,800 in reimbursement for the Division’s
  attorneys’ fees and investigative costs.  An additional $50,000 in civil
  penalties is suspended but will become immediately payable if Freedom
  Mortgage fails to comply with the settlement terms within the next year.

  
  

  The settlement also provides that any consumer complaint received by
  the Division within the next year be forwarded to Freedom Mortgage for
  resolution and, if not resolved, to the Division’s Alternative Dispute
  Resolution Unit for binding arbitration. Additionally, within 30 days of
  the filing of the Consent Order, Freedom Mortgage must designate an
  employee to serve as the company’s Complaint Coordinator for a period of
  18 months. During this time, the Complaint Coordinator will be
  responsible for ensuring Freedom Mortgage complies with the terms of the
  Consent Order and all applicable consumer protection laws and
  regulations.  The Complaint Coordinator will also be responsible for
  providing the Division with written quarterly reports summarizing
  additional complaints received or resolved by Freedom Mortgage.

  
  

  The Division found that Freedom Mortgage violated the New Jersey
  Consumer Fraud Act (“CFA”), the Advertising Regulations, and the
  Telemarketing Do Not Call Law and related regulations by:

  
  

  
  
  • making unsolicited telemarketing sales calls to consumers despite not being registered with the Division as a telemarketer;
  
  
  • engaging in abusive and deceptive telemarketing practices, primarily involving multiple refinancing solicitations;
  
  
  • engaging in “bait-and-switch” sales tactics, such as inducing
    consumers to refinance their loans at lower rates only to raise the
    rates after consumers sign the refinancing documents;
  
  
  • failing to timely disburse payments from escrow;
  
  
  • failing to apply consumers’ mortgage loan payments in a timely
    manner, or at all, resulting in negative credit reporting for consumers,
    as well as late fees;
  
  
  • failing to timely issue escrow refunds to consumers; and
  
  
  • failing to respond to consumer inquiries with accurate information.
  
  

  
  

  LINK: https://www.njoag.gov/ag-platkin-and-the-division-of-consumer-affairs-announce-502000-settlement-with-freedom-mortgage-corp/

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