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Freedom Mortgage Home Inspection Settlement - $2.7 Million To Settle Class Action Over Unnecessary Inspections

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Freedom Mortgage Home Inspection Settlement – $2.7 Million To Settle Class Action Over Unnecessary Inspections…

Freedom Mortgage Agrees To Pay $2.7 Million To End Class Action Allegations That They Enforced Illegal Home Inspections On Their Mortgage Holders 

Mortgage provider Freedom Mortgage Corp. has recently decided to enter into a settlement agreement and promised to pay up $2.7 million to end a class action lawsuit filed against them over alleged illegal home inspections. 

Brandy and Michael Gress, et al. v. Freedom Mortgage Corp.

Click to access Brandy-and-Michael-Gress-et-al.-v.-Freedom-Mortgage-Corp..pdf

The class action case was filed by complainants Michael and Brandy Gress. Both argued that Freedom Mortgage ordered four home inspection orders on their property that were deemed to be illegal. 

According to the two, Freedom Mortgage scheduled and had the inspections done in a bid to determine whether their property is occupied and maintained properly. However, the Gresses contended that the company knows that the house is occupied and is being kept in proper condition because they are in constant communication with Freedom Mortgage’s personnel. 

Continuing their complaint, the pair argued that Freedom Mortgage uses an automated computer system to automate the scheduling of the said home inspections. Reports were also done automatically. 

Amounting to $15 on each home inspection conducted, Freedom Mortgage ended up charging their clients, including the Gresses and an estimated tens of thousands of others, for the unnecessary and allegedly illegal home inspections. 

Freedom Mortage Attempts To Justify Their Stance But Decides To Enter Into An Agreement

In their defense, Freedom Mortgage’s legal team retorted back that the company has the legal right to schedule and conduct a home inspection on properties that are under mortgage agreements with their customers. 

The plaintiffs’ team, however, fired back by saying that the home inspections ordered by the company were unnecessary, illegal, and violated laws concerning consumer fraud protection statutes. 

Further court hearings were conducted, and the case even reached the higher Third Circuit court.

An interesting addition to the subsequent turn of events, Freedom Mortgage recently agreed to enter into a $2.7 million settlement agreement with the Gresses team to end the ongoing legal battle raised against the company. Although to this day, the defendant mortgage company has vehemently denied any wrongdoing on their end. 

Settlemen’s Initial Details 

Initial estimates suggest that if the settlement agreement gets the court’s approval, it may benefit more than 74,000 eligible Class member participants in different states across the country. 

The final amount each one can receive depends on the number of home inspections conducted on the request of Freedom Mortgage and will be computed as part of the settlement proceedings. It is expected that some can get settlement checks as high as $625. 

About Freedom Mortgage

Established in 1990, Freedom Mortgage Corporation, or simply called Freedom Mortgage in this feature, is a mortgage company that provides different types of home loans and financing products and services to their clients. The company is based in Mount Laurel, New Jersey. 

Editor’s Note on Freedom Mortgage Home Inspection Settlement: 

This feature aims to inform you of the latest settlement news about Freedom Mortgage’s agreement with complainants suing them over alleged illegal home inspections. You might also be interested in a similar lawsuit filed against the Bank of America.

Case Name(s) & No.: Brandy and Michael Gress, et al. v. Freedom Mortgage Corp.; Case No.: 1:19-cv-00375

Jurisdiction: United States (U.S.) District Court for the Middle District of Pennsylvania 

Products/Services Involved: Home Inspection Fees

Allegation(s): Freedom Mortgage ordered allegedly illegal and unnecessary home inspections on their property mortgage borrowers. 

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