Freedom Mortgage is one of the largest mortgage companies in the United States — the third-largest mortgage originator by volume with a portfolio heavily concentrated in FHA and VA government-backed loans. This concentration defines the most important characteristic of Freedom Mortgage for homeowners seeking modifications: federal programs that govern FHA and VA modifications carry specific mandatory evaluation requirements, specific tools, and specific oversight mechanisms that are materially more favorable to homeowners than conventional loan programs — but only when correctly invoked.
The most important of these tools — the FHA partial claim — is one of the most powerful yet underutilized loss mitigation instruments in the entire mortgage system. Freedom Mortgage is required by HUD to evaluate qualifying FHA borrowers for the partial claim before issuing a modification denial or initiating foreclosure. Yet most Freedom Mortgage FHA borrowers in default never receive a partial claim evaluation. Many are denied modification without it ever being offered. Some enter foreclosure without knowing it existed. Professional help at Freedom Mortgage is, more than at any other servicer, about knowing these mandatory evaluation requirements exist and demanding they be fulfilled.
The FHA partial claim is a zero-interest subordinate lien that HUD pays to the servicer on the borrower's behalf, bringing the delinquent first mortgage completely current. The partial claim amount covers outstanding arrears, fees, and costs — and is structured as a separate lien due when the property is sold or the first mortgage is paid off. During the period between the partial claim and the eventual payoff or sale, the borrower pays nothing on the partial claim amount and their regular first mortgage payment is unchanged. The entire delinquency is resolved without the borrower paying anything out of pocket and without modifying the first mortgage terms.
For Freedom Mortgage FHA borrowers who have the income to make their regular monthly payment but accumulated arrears due to a temporary hardship, the partial claim is frequently the correct resolution — not modification. The partial claim cures the delinquency and restores the loan to current status. Modification changes the loan terms. These are different solutions for different circumstances, and HUD requires Freedom Mortgage to evaluate for the partial claim specifically because it is often the better outcome for the borrower. Freedom Mortgage's failure to proactively offer partial claim evaluation means many borrowers who qualify for the partial claim — a resolution that requires no out-of-pocket payment and no change to their monthly payment — are instead put through modification reviews where the modified payment may be higher than necessary, or denied modification when the partial claim would have resolved the matter entirely.
HUD requires Freedom Mortgage to evaluate FHA borrowers for loss mitigation options in a specific sequence — the HUD loss mitigation waterfall — before any foreclosure action can be taken. This waterfall includes informal forbearance, formal forbearance, special forbearance, loan modification, and partial claim, evaluated in order. Freedom Mortgage cannot skip to a modification denial or proceed to foreclosure without completing this evaluation sequence. A Freedom Mortgage that issued a modification denial without evaluating the partial claim has not completed the HUD-mandated waterfall — meaning the denial may be both incorrect and in violation of Freedom Mortgage's FHA servicer obligations. Professional identification of this failure and the specific demand for complete HUD waterfall evaluation is one of the most impactful interventions available for Freedom Mortgage FHA borrowers.
Freedom Mortgage is also a significant VA lender and servicer. VA loans carry servicer obligations that extend beyond conventional loan requirements. Freedom Mortgage must exhaust all reasonable means of avoiding foreclosure before proceeding against a VA-guaranteed loan — a standard that is more demanding than the federal 120-day filing threshold alone. The VA regional loan center can intervene directly when Freedom Mortgage is not meeting its VA servicing obligations: contacting Freedom Mortgage, reviewing its loss mitigation compliance file, and requiring corrective action. This institutional advocacy is available to any veteran with a Freedom Mortgage VA loan in default. Most veterans never invoke it because they do not know it exists.
VA modification programs also have terms that are often more flexible than conventional Flex Modification — including specific VA supplemental loan provisions and interest rate reduction tools that apply specifically to VA-guaranteed mortgages. Professional knowledge of the full VA loss mitigation toolkit — beyond what Freedom Mortgage's standard workflow presents — gives VA borrowers access to the complete range of options available to them.
For Fannie Mae and Freddie Mac conventional loans serviced by Freedom Mortgage, the Flex Modification applies — targeting approximately 20% monthly payment reduction through interest rate reduction, term extension, and principal forbearance where applicable. The calculation follows standardized GSE guidelines that Freedom Mortgage must apply correctly. Professional review of Freedom Mortgage's Flex Modification calculation identifies errors in the benchmark rate used, the term applied, or the principal forbearance calculation that are correctable through the appeal process. Freedom Mortgage's conventional portfolio is smaller relative to its FHA and VA book, but the same professional review and completeness standards apply.
Behind on Your Freedom Mortgage? Find Out What HUD and VA Require Freedom Mortgage to Offer You
Freedom Mortgage's FHA and VA borrowers have mandatory evaluation rights — the FHA partial claim and VA regional loan center oversight — that most borrowers never invoke because they do not know these rights exist. A professional identifies your loan type and invokes every required evaluation immediately.
See My Options →How do I know if my Freedom Mortgage is an FHA loan?
FHA loans show mortgage insurance premium (MIP) charges on monthly statements. Your original loan documents identify the loan type. A professional can confirm your loan type immediately from your statement or loan number.
What happens after I submit my information?
A mortgage relief professional reviews your Freedom Mortgage situation, identifies your loan type, and determines exactly what Freedom Mortgage is required to evaluate — including whether FHA partial claim evaluation was skipped.
Freedom Mortgage's modification application requires the completed borrower assistance form, two most recent pay stubs, two most recent years of federal tax returns, two to three most recent months of complete bank statements (every page), a signed and dated hardship letter, monthly income and expense documentation, and all additional income documentation. For FHA borrowers, the application should specifically demand evaluation for all HUD loss mitigation options including the partial claim — in writing, creating a documented record that this evaluation was requested. Professional preparation of the Freedom Mortgage application ensures this FHA-specific demand is included, that every document meets Freedom Mortgage's completeness requirements, and that the application triggers dual tracking protections on first submission.
Federal regulations protect Freedom Mortgage borrowers who submit a complete application more than 37 days before a scheduled sale date — prohibiting the sale from proceeding while the application is under review. For FHA borrowers at Freedom Mortgage, this protection is reinforced by HUD's requirement that Freedom Mortgage complete its full loss mitigation waterfall before foreclosing. A Freedom Mortgage foreclosure on an FHA loan where the partial claim was never evaluated may be challengeable on HUD compliance grounds even if the 37-day window has passed — creating a regulatory basis for intervention that goes beyond standard dual tracking.
FHA partial claim not evaluated: Freedom Mortgage denied modification without evaluating the partial claim as required by HUD's waterfall. This is a regulatory failure that professional demand for correct evaluation can reverse entirely for qualifying FHA borrowers.
Income insufficient for modified payment: The modified payment is not affordable under the investor's threshold. For FHA borrowers, whether the partial claim was correctly evaluated as a way to bring the loan current before assessing modification affordability is the first question — not whether the income calculation is correct.
NPV test negative: Freedom Mortgage determined foreclosure produces more value than modification. NPV inputs — property value, income, discount rate — are commonly miscalculated. Professional review identifies the specific inputs used.
VA loss mitigation not exhausted: For VA borrowers, Freedom Mortgage proceeded toward denial without exhausting all reasonable means. VA regional loan center intervention is the appropriate response.
Was Your Freedom Mortgage Modification Denied? Find Out Whether All Required Evaluations Were Completed
Many Freedom Mortgage modification denials occur because the FHA partial claim was never evaluated as required by HUD. A professional review of your denial identifies whether Freedom Mortgage fulfilled its complete HUD obligations and invokes the appropriate response.
See My Options →Is there any cost to find out what I qualify for?
Submitting your information costs nothing. A professional reviews your situation and discusses your options before any commitment is made.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Mortgage Options Network is operated by Pipeline Harbor Digital LLC. We connect homeowners with experienced mortgage relief professionals who can help evaluate their options.