Additional Information
Additional Information for Freedom Mortgage Corporation
This is a multi-location business.
- Headquarters
- 951 W Yamato Rd STE 175, Boca Raton, FL 33431-4444
- BBB File Opened:
- 1/16/2013
- Years in Business:
- 31
- Business Started:
- 5/17/1993
- Business Incorporated:
- 5/17/1993
- Licensing Information:
- This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.BBB records show a license number of MLD185 for this business, issued by Florida Office of Financial Regulation
These agencies may include:
Florida Office of Financial Regulation
200 East Gaines Street
Tallahassee FL 32399
BBB records show a license number of 2767 for this business, issued by NMLSThese agencies may include:
NMLS
200 E Gaines St
Tallahassee FL 32399
- Type of Entity:
- Corporation
- Alternate Business Name
- Longport Lending
- Business Management
- Ms. Angel Bell
- Mr. Stanley Middleman, President
- Ms. Maria Gallucci, Secretary
- Ms. Rosanne Hoch, Vice President of Customer Service
- Mr. Colton Hower, Marketing Director
- Mr. Joseph Pompetti, Director
- Mr. Nick Definis, Director of Customer Service
- Mr. Joseph Murphy, Customer Service Manager
- Mr. Billy Thomas, Vice President of Marketing
- Contact Information
Customer Contact
- Ms. Angel Bell
- Mr. Stanley Middleman, President
- Ms. Maria Gallucci, Secretary
- Ms. Rosanne Hoch, Vice President of Customer Service
- Mr. Colton Hower, Marketing Director
- Mr. Joseph Pompetti, Director
- Mr. Nick Definis, Director of Customer Service
- Mr. Joseph Murphy, Customer Service Manager
- Mr. Billy Thomas, Vice President of Marketing
- Additional Contact Information
Phone Numbers
- (800) 220-3333Other Phone
- (855) 215-6495Other Phone
- (800) 220-3333
- Additional Business Information
- Government ActionsGovernment Action: BBB reports on known government actions involving business’ marketplace conduct: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/
Pending Government ActionGovernment Action: BBB reports on known government actions involving business’ marketplace conduct:Consumer Financial Protection Bureau, vs Freedom Mortgage Corporation.9:23-cv-81373 SD FlaAs of October 10, 2023
The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in federal court, alleging that Freedom Mortgage Corporation submitted legally-required mortgage loan data that was riddled with errors. The CFPB alleges that Freedom’s practices violate both the Home Mortgage Disclosure Act (HMDA) and a 2019 consent order. In a recent separate matter, in August 2023 the CFPB fined Freedom $1.75 million for paying illegal kickbacks for mortgage loan referrals.
Freedom Mortgage Corporation is a privately held nonbank mortgage loan originator and servicer headquartered in Boca Raton, Florida. In 2020, Freedom reported HMDA data on over 700,000 mortgage loan applications and originated nearly 400,000 HMDA-reportable loans worth almost $100 billion.
Under HMDA, mortgage lenders are required to report information about loan applications and originations to the CFPB and other federal regulators. HMDA data are the most comprehensive source of publicly available information on the U.S. mortgage market. The public and regulators can use the information to monitor whether financial institutions are serving the housing needs of their communities, and to identify possible discriminatory lending patterns.
The lawsuit filed alleges that the HMDA data Freedom submitted for 2020 contained widespread errors across multiple data fields, and that the errors constitute violations of HMDA, the Consumer Financial Protection Act, and the 2019 order.
Specifically, the CFPB alleges:
- Freedom reported information to regulators with widespread inaccuracies: After the CFPB found 51 errors in an initial review of 159 files in Freedom’s 2020 submission, the company had to resubmit its data. In that resubmission, Freedom corrected errors in 35 different required HMDA data fields—this reflects errors in over 174,000 data entries affecting nearly 20 percent of Freedom’s mortgage loan applications.
- Freedom violated a 2019 law enforcement order: Freedom was ordered in 2019 to clean up its deficient data practices, but failed to do so. Instead, it continued to provide federal regulators with error-ridden data.
LINK: https://www.consumerfinance.gov/about-us/newsroom/cfpb-sues-repeat-offender-freedom-mortgage-corporation-for-providing-false-information-to-federal-regulators/
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Alerts
See What BBB Reports OnGovernment Action: BBB reports on known government actions involving business’ marketplace conduct:
As of August 17, 2023
CFPB Penalizes Freedom Mortgage and Realty Connect for Illegal Kickbacks
Lender provided incentives to Realty Connect and other brokerages in exchange for mortgage referrals
The Consumer Financial Protection Bureau (CFPB) took action against Freedom Mortgage Corporation (Freedom) for providing illegal incentives to real estate brokers and agents in exchange for mortgage loan referrals. Freedom provided real estate agents and brokers with numerous incentives — including cash payments, paid subscription services, and catered parties — with the understanding they would refer prospective homebuyers to Freedom for mortgage loans. This conduct violated the Real Estate Settlement Procedures Act and its implementing regulation. The CFPB is ordering Freedom to cease its illegal activities and pay $1.75 million into the CFPB’s victim relief fund. The CFPB separately issued an order against a real estate brokerage firm, Realty Connect USA Long Island (Realty Connect), for accepting numerous illegal kickbacks from Freedom. Realty Connect will pay a $200,000 penalty and cease its unlawful conduct.
The Real Estate Settlement Procedures Act helps reduce closing costs for homebuyers and increases competition in the marketplace by prohibiting mortgage loan originators from offering referral incentives and kickbacks to other companies in exchange for referring homebuyers.
The CFPB found Freedom and Realty Connect violated the Real Estate Settlement Procedures Act. The specific violations include:
Paying for referrals through illegal marketing service arrangements: Freedom entered into marketing services agreements with over 40 real estate brokerages where Freedom made monthly payments totaling approximately $90,000 to brokerages in exchange for the brokerages’ marketing services. However, Freedom used these marketing services agreements as a way to pay for mortgage referrals, rather than compensate the brokerages for marketing services they actually performed. Realty Connect received $6,000 per month from Freedom, but failed to perform many of the marketing tasks required under the agreement.
Offering premium subscription services free of charge: Freedom gave real estate brokers and agents free access to valuable industry subscription services, which provided information concerning property reports, comparable sales, and foreclosure data. Freedom paid thousands of dollars per month for one of the subscription services, and Freedom provided access to over 2,000 agents for no cost. Freedom often required real estate agents and brokers to agree to be paired with a Freedom loan officer before Freedom would give them access to its subscription services. Since 2017, the real estate agents who received free access to these subscription services—including agents at both Realty Connect and other brokerages—made more than 1,000 mortgage referrals to Freedom.
Hosting and subsidizing company events and providing gifts: Freedom hosted parties and other events for real estate agents and brokers, including events held exclusively for Realty Connect brokers and agents. Freedom paid for the food, beverages, alcohol, and entertainment. Freedom would also sometimes give free tickets to sporting events, charity galas, or other events where the agents and brokers would have otherwise needed to pay their own way. Freedom also denied requests for event sponsorship from real estate brokerages that did not refer mortgage business to Freedom’s loan officers.
Enforcement Action
The CFPB found that Freedom and Realty Connect violated the Real Estate Settlement Procedures Act by exchanging items of value in return for mortgage loan referrals.
The orders announced today require Freedom and Realty Connect to:
Cease illegal activities: Freedom is prohibited from providing anything of value to other entities in exchange for mortgage referrals. Realty Connect is prohibited from accepting items of value in exchange for mortgage referrals.
Pay nearly $2 million in penalties: Freedom will pay a $1.75 million penalty into the CFPB victims relief fund. Realty Connect will also pay a $200,000 civil money penalty.
LINK: https://www.consumerfinance.gov/about-us/newsroom/cfpb-penalizes-freedom-mortgage-and-realty-connect-for-illegal-kickbacks/
Accreditation Revocation
1. Establish and maintain a positive track record in the marketplace.
1C. Be free from government action that demonstrates a significant failure to support BBB ethical principles. BBB evaluates the action and makes a determination on adherence to this standard based on the nature of the violation and the extent of harm it caused or is alleged to have caused, whether it was caused or condoned by management, and actions taken to resolve underlying issues that led to the government action.
1D. Maintain at least a B rating in all company-owned locations and its headquarters.
Accreditation
Years in Business: 31
BBB Rating
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