Paul Sanchez
Freedom Mortgage Corporation is a privately held, full-service mortgage lender that offers mortgage insurance options for borrowers. The company provides mortgage loan servicing and originations through various channels and is licensed to operate in all 50 states. In 2025, Freedom Mortgage Corporation agreed to pay $113 million to resolve allegations of violating the False Claims Act by underwriting single-family mortgage loans insured by the Federal Housing Administration (FHA) that did not meet eligibility requirements. While Freedom Mortgage offers both borrower and lender-paid insurance options, it is unclear if their loans are specifically insured for death.
| Characteristics | Values |
|---|---|
| Death Insurance | Not mentioned |
| Insurance Options | Borrower- and lender-paid insurance with monthly and single payment options |
| Insurance Providers | National MI and four other carriers |
| Insurance Requirements | Required on conventional loans for first lien mortgages with a loan-to-value ratio greater than 80% |
| False Claims Act Liability | Settled for $113 million |
Explore related products
What You'll Learn
- Freedom Mortgage offers borrower- and lender-paid insurance
- The company has settled for $113 million over False Claims Act violations
- Freedom Mortgage offers refinancing options to lower monthly payments
- The company provides mortgage loan servicing and originations through multiple channels
- Freedom Mortgage offers a range of insurance options for borrowers
Freedom Mortgage offers borrower- and lender-paid insurance
Mortgage insurance is required on conventional loans for first lien mortgages with a loan-to-value ratio greater than 80%. It protects the lender against losses if the property goes into foreclosure and the lender cannot recover its costs after the REO property is sold. There are seven private mortgage insurers in the U.S. and Freedom Mortgage offers mortgage insurance through five of these carriers.
Freedom Mortgage Corporation is a privately held, full-service mortgage lender licensed in all 50 states. The company was founded in 1990 and is headquartered in Mount Laurel, New Jersey. It is the nation's fifth-largest mortgage provider.
In 2025, Freedom Mortgage Corporation agreed to pay the United States $113 million to resolve allegations that it violated the False Claims Act. This was in connection with its participation in the FHA-insured mortgage lending program. The settlement resolved allegations that Freedom Mortgage Corporation failed to comply with certain FHA origination, underwriting, and quality control requirements.
In addition to borrower- and lender-paid insurance, Freedom Mortgage also offers Federal Housing Administration (FHA) loans. FHA loans are insured by the U.S. Department of Housing and Urban Development (HUD). If a borrower has a mortgage on their home, they may be able to refinance into an FHA loan and receive cash to consolidate high-interest debt or use it for other expenses.
BMW Gap Insurance: Is It a Smart Investment?
You may want to see also
Explore related products
$9.97
The company has settled for $113 million over False Claims Act violations
Freedom Mortgage Corporation has agreed to pay the United States government $113 million to resolve allegations that it violated the False Claims Act. The company, headquartered in Mt. Laurel, New Jersey, was accused of knowingly originating and underwriting single-family mortgage loans that were insured by the Federal Housing Administration (FHA) but did not meet the applicable requirements for the FHA insurance program. This resulted in significant losses for the government.
During the time period covered by the settlement, Freedom Mortgage Corporation participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a loan endorsed by a DEL defaults, the loan holder may submit an insurance claim to the FHA's parent agency, the U.S. Department of Housing and Urban Development (HUD), for the resulting losses.
Under the DEL program, the FHA does not review loans for compliance with FHA requirements before they are endorsed for insurance. Therefore, DELs are required to follow program rules and maintain a quality control program to ensure proper underwriting practices. They are also required to self-report any deficient loans identified by their quality control program.
As part of the settlement, Freedom Mortgage Corporation admitted that between January 1, 2006, and December 31, 2011, it certified mortgage loans for FHA insurance that did not meet HUD underwriting requirements and were therefore ineligible for FHA mortgage insurance. The company also failed to adhere to FHA's quality control (QC) requirements, including not sharing early payment default (EPD) QC reviews with production and underwriting management and not requiring responses to its EPD QC findings. Due to staffing limitations, the company also did not always perform timely QC reviews or audits of all EPD loans as required by HUD.
The settlement resolves allegations that Freedom Mortgage Corporation failed to comply with certain FHA origination, underwriting, and quality control requirements. The company has not admitted liability but stated that it made a "business decision" to reach a settlement to avoid "extended distractions and expenses associated with protracted litigation." The settlement agreement does not interfere with the company's current ability to originate FHA-insured loans.
Calculating House Insurance: NZ Guide
You may want to see also
Explore related products
$12.49 $29.95
Freedom Mortgage offers refinancing options to lower monthly payments
To refinance your home with Freedom Mortgage, you must pay off your current mortgage and replace it with a new mortgage that has better rates or terms. You will need to complete a new mortgage application, submit documents, sign disclosures, and attend the closing. You will also need to meet Freedom Mortgage's requirements to get approved, including being current on your mortgage with no recent late payments and having a credit score of 620 or better.
Freedom Mortgage may be able to offer you a refinance rate that is lower than the rate advertised by other lenders. The company offers both borrower- and lender-paid insurance, with monthly and single payment options. They also have a special program called the Eagle Eye program, which helps you lower your monthly payment if interest rates drop or if the value of your home increases.
It's important to note that refinancing can sometimes raise the total cost of the loan's principal and interest, as it may extend the length of the loan. It's recommended to carefully review the terms and seek expert advice before making any decisions.
Farmers Insurance Open: Navigating Parking Options
You may want to see also
Explore related products
The company provides mortgage loan servicing and originations through multiple channels
Freedom Mortgage is a non-bank, full-service mortgage company that provides mortgage loan servicing and originations through multiple channels, including retail, wholesale, and correspondent channels. The company is licensed to operate in all 50 states and is renowned for providing world-class service to its clients, borrowers, and partners.
Freedom Mortgage offers a range of mortgage options, including conventional loans, Federal Housing Administration (FHA) loans, and Veteran Affairs (VA) loans. They also provide both borrower- and lender-paid insurance with monthly and single payment options. Additionally, Freedom Mortgage has expanded its mortgage insurance options by partnering with more approved mortgage insurance providers to help more borrowers qualify for mortgages.
In terms of insurance claims, Freedom Mortgage is listed as a payee on insurance checks as they have a secured interest in the property. The company may endorse the check and return it to the customer, or deposit it into an escrow account to pay for repairs. Freedom Mortgage can process insurance claims by mail and facsimile, and customers are advised to include their loan number on all documents.
While Freedom Mortgage does not offer private mortgage insurance, a VA funding fee is due at closing for standard VA loans unless the veteran is eligible for an exemption. It is important to note that Freedom Mortgage was involved in a settlement with the United States, agreeing to pay $113 million to resolve allegations of violating the False Claims Act by originating and underwriting single-family mortgage loans insured by the Federal Housing Administration that did not meet applicable requirements.
Overall, Freedom Mortgage provides mortgage loan servicing and originations through multiple channels, offering flexibility and accessibility to its customers.
Farmers Insurance Office in Utah: A Guide to Finding Their Location
You may want to see also
Explore related products
Freedom Mortgage offers a range of insurance options for borrowers
Freedom Mortgage is a non-bank, full-service mortgage company that offers a range of insurance options for borrowers. The company provides mortgage loan servicing and originations through various channels, including retail, wholesale, and correspondent channels. As the nation's fifth-largest mortgage provider, Freedom Mortgage is licensed to operate in all 50 states and is renowned for its world-class client service.
The company has expanded its mortgage insurance options to help more borrowers qualify for mortgages. Freedom Mortgage offers both borrower- and lender-paid insurance, with flexible payment options, including monthly and single payment choices. This means that borrowers have the option to pay for their insurance monthly or as a one-time payment.
Mortgage insurance is required for conventional loans with a loan-to-value ratio greater than 80%. This type of insurance protects the lender in the event that the property goes into foreclosure and the lender cannot recover their costs after selling the property. Freedom Mortgage has relationships with several private mortgage insurance providers, including National MI, allowing borrowers to choose from a range of insurance carriers.
Additionally, Freedom Mortgage offers Federal Housing Administration (FHA) loans, which provide insurance to protect lenders from losses. In the event of the homeowner's death, the loan becomes payable, and the lender is reimbursed for the loan amount, servicing costs, and any accrued interest.
Freedom Mortgage also assists borrowers in navigating the complexities of insurance claims. The company provides clear instructions on submitting insurance claim documents and facilitates the processing of claims by mail or facsimile. Overall, Freedom Mortgage's range of insurance options and customer support aim to provide borrowers with peace of mind and financial protection.
Personal Mortgage Insurance: What You Need to Know
You may want to see also
Frequently asked questions
Freedom Mortgage offers both borrower- and lender-paid insurance, with monthly and single payment options. The FHA program also protects lenders from loss by providing mortgage insurance. Under the FHA program, a loan becomes due and payable when the home is sold or vacant for more than 12 months or upon the death of the homeowner.
The Federal Housing Administration (FHA) is a U.S. Department of Housing and Urban Development (HUD) program that insures mortgage loans.
The FHA program protects lenders from loss. If a loan defaults, the lender may submit an insurance claim to HUD for the losses resulting from the defaulted loan.
Freedom Mortgage loans that are insured by the FHA will meet the applicable requirements for the FHA insurance program. These requirements include compliance with HUD underwriting requirements.
