Top Class Actions  |  July 22, 2022

Category: Closed Class Actions

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This settlement is closed!

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Calculating Mortgage inspection fees - PHH Mortgage, Shellpoint Mortgage Servicing lawsuit
(Photo Credit: fizkes/Shutterstock)

NewRez LLC, doing business as Shellpoint Mortgage Servicing, has agreed to a $500,000 class action lawsuit settlement resolving claims it sent misleading mortgage statements to certain borrowers.

The class is made up of individuals whose residential mortgage loan was serviced by Shellpoint and who, while under a Coronavirus Aid, Relief And Economic Security (CARES) Act forbearance plan, received a periodic mortgage statement in the same form as the statement attached to the revised settlement agreement. 

Plaintiffs in the Shellpoint Mortgage Servicing class action lawsuit alleged the company violated the Fair Debt Collection Practices Act (FDCPA) and the California Rosenthal Act by sending misleading mortgage statements to borrowers who were participants in the CARES Act forbearance plan.

The settlement does not resolve claims the plaintiffs made under the Telephone Consumer Protection Act (TCPA).

Shellpoint Mortgage Servicing manages mortgage loans, accepting payments from more than 1.7 million homeowners throughout the U.S., according to the company’s website. It is the country’s fifth-largest non-bank mortgage servicer.

The company has not admitted any wrongdoing, and the court has not decided who is right in this case. However, the parties have agreed to the settlement.

Under the terms of the settlement, class members will be eligible for a cash payment from the $500,000 settlement fund.

If the court approves the settlement, eligible class members will receive a proportionate distribution; current borrowers will automatically receive a credit, while former borrowers will receive a check in the mail.

If all potential class members participate, each person’s payment will be about $4.77.

The attorneys involved in the case believe a settlement of an FDCPA claim could be taxable. Class members are responsible for any taxes or tax reporting related to Shellpoint Mortgage Servicing lawsuit settlement payments.

Attorneys’ fees and other expenses will be paid separately.

In addition to the monetary relief, Shellpoint has agreed to implement changes in written statements to its borrower clients.

The deadline to opt out of or object to the Shellpoint Mortgage Servicing lawsuit settlement is July 27, 2022.

A final hearing is scheduled to take place Oct. 20, 2022.

Class members do not need to submit a claim form to benefit from this settlement.

Who’s Eligible

Individuals whose residential mortgage loan was serviced by Shellpoint and who, while under a Coronavirus Aid, Relief And Economic Security (CARES) Act forbearance plan, received a periodic mortgage statement in the same form as the statement attached to the revised settlement agreement. 

Potential Award

About $4.77.

Proof of Purchase

No proof of purchase required.

Claim Form

No claim form required.

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

N/A

Case Name

Dutcher v. Shellpoint Mortgage Servicing
U.S. District Court for the Eastern District of Pennsylvania
Case No. 2:21-cv-2062

Final Hearing

Dutcher v. Shellpoint Mortgage Servicing, Case No. 2:21-cv-2062 in the U.S. District Court for the Eastern District of Pennsylvania

Claims Administrator

Dutcher v. Shellpoint Mortgage
c/o Kroll Settlement Administration
P.O. Box 5324
New York, NY 10150-5324
1-833-620-3586

Class Counsel

BAILEY & GLASSER LLP

GUCOVSCHI ROZENSHTEYN PLLC

Defense Counsel

William Heller
Marc J. Gottlieb
Celia C. Falzone
AKERMAN LLP

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36 thoughts onShellpoint Mortgage Servicing misleading statements $500K class action lawsuit settlement

  1. Tanesha Washington says:

    Please add me to the lawsuit also. My home is in Geismar, la. I have placed insurance with shell point and I suffered with damages for my home from the storm in 2019. Shell point Mortgage sent me a check for 132.63 for damages when a tree fell on my home. Please help.

  2. Frances French says:

    Shellpoint is refusing to take further mortgage payments from me because they want all of the payments that were deferred during covid to be paid. At this point they have not forclosed on my home, but I keep getting further in the hole as they keep sending my mortgage payment back to me. What can I do? They may put me in the street. I’m 74 and it’s not fair after I paid 23 years on this property.

  3. Elonnte Parrott says:

    Please add me Derrick Coleman told me the fees can be waved now my grandmother home is in foreclosure they don’t want to work with you trash company. Fay service just stop taking payment for no reason after five years of my grandmother being gone the government should stop these mortgage companies from doing good people wrong.

  4. Linda says:

    ADD ME, too. I had NO IDEA. SHELLPOINT IS NEW REZ AKA PHH AKA OCWEN????

  5. Linda says:

    I had no idea that OCWEN aka PHH aka NEW RE was also SHELLPOINT Mortgage. I was encouraged to miss three months of mortgage payments to qualify for a modification. I applied 2 times. And both times denied even though I’m living 130% below the poverty level. The Modification, I believe, was a sham to make me fall into repossession qualification so they could take my house. I used to get weird calls from India late at night with scary sounding men asking where my money was for monthly payment on the SECOND of every month. Harassment!! .

  6. Felix says:

    They never inform me of any lawsuit of any sort. This company need to be held accountable for numerous things please contact me

    1. Lydia Rodriguez says:

      Since I been with shell point servicing,My husband and I have always paid on time.but in my last month payment they change there address on the statement and we sent the payment on time and now they said they didn’t receive the payment on time and charge us two late fees.

  7. Glendora Burgess says:

    I have a home loan with this company I was not informed of the lawsuit during the pandemic I also still got a bill add me to this lawsuit also

  8. Shelia Craven says:

    I have been with this company for years now and I had to claim bankruptcy due to the pandemic and my husband being unable to work due to not being able to work because he works inside peoples homes which could not be done due to pandemic. Also have been trying to get a claim paid by their insurance company for over a year on black mold in our home. Thank you Shelia Craven

    1. Marcia H Abbott says:

      I feel behind during COVID shellpoint told me that I owe 8663.35 in mortgage payments so my daughter got involved and found United States Department of Housing n I got approved for 9683.n some change in October I believe n now they Shellpoint is saying that they haven’t gotten any of my mortgage payments I have no Idea what to do Now they r saying my home is going into foreclosure

  9. Randy Baker says:

    Please add my dad Randy Baker, they have been jerking him around for 6 months! Worst company EVER!

  10. Heather says:

    Add me

    1. Carol C Mayfield says:

      I applied for a deferment due to the passing of my ex due to covid and I missed a few payments due to being out sick with COVID plus a serious medical leave because of it all where I was not getting paid. My representative told me not to worry and my deferment was being processed for 8 months. They told me no paperwork was required and I reached out to them each week or two for an update. Still was told it was still in process. I was 8k behind and now I am 22k behind. Still they told me it would be approved and to be patient. Now a Manager has submitted it yet again and I am still waiting…in the meantime they told me not to worry about the Foreclosure now on my door and that my house will not be taken. I trusted Shellpoint….now what?

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