Top Class Actions  |  July 22, 2022

Category: Closed Class Actions

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

This settlement is closed!

Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!

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

Read About More Class Action Lawsuits & Class Action Settlements:

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

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

  1. Delco says:

    These lawyers are crooks too!!

  2. Obed Ramos says:

    I applied for deferment when covid cause work closed down for few weeks ,got sick and my son had a serious car accident..after 9 months I applied for modification and they denied it ..it was 9 thousand I owe and now 22 thousand
    ..I had applied five times and they keep telling me they didn’t receive bank statements or paystub or they received it late when sent all documents they ask for together..is very frustrating not knowing what’s next or gonna happen with house

  3. Tara hornbaker says:

    Hi, ever since covid we have been trying to get a modification t help. They denied us because of ratio didn’t add up. I’m beyond confused I got sick with covid when we’re going to the first modification and we can’t miss the first three payments unfortunately after the first payment I had to put a claim in for the insurance company and my business is out of my home and it wasn’t livable to be here because of water and possible mold damage. So I missed the second payment and I contacted Shell point cuz I received covid and I contacted Shell point cuz and unfortunately I contacted covid at the same time this was all going on so they said for us to file another modification which this time I got denied cuz of the ratio which I don’t understand what that even means. So now we’re looking at foreclosure from no fault of my own and they also have my insurance check that they do not want to release to me saying that I became a default of my mortgage in 2021 when I actually didn’t go into default was the same month I put the claim in cuz we’re going to the modification and then he canceled that out so I did the first month the second month I couldn’t follow up with cuz I was sick and I couldn’t work because of the insurance claim. They keep saying that denying phone calls I had with other people saying that they were going to give me my check and they’re saying that I’m a liar and when I keep calling and asking a semi-proof of the modification and that it went and default that March 2022 nobody ever contacts me back or sends me any information so I don’t know if I could be a part of this lawsuit I’m really just at my Wit’s End here… I don’t want to be a part of a lawsuit that I don’t deserve so but I also don’t want to miss out on something that is that I could benefit from that is no fault of my own

  4. Judy A Rogind says:

    Please add me. Have had nothing but problems since Shellpointe Newrez took my mortgage over. Fees for unknown reasons, force placed insurance, the list goes on.

    1. Lois K Hinson says:

      I agree, the are the absolute worst company i have ever dealt with! They give you the round around, no answers!

  5. Judy A Rogind says:

    Please add me. Have had nothing but problems since Shellpointe Newrez took my mortgage over. Fees for unknown reasons, force placed insurance the list goes on.

  6. Vic Maslanka says:

    The check that I received from the proceeds of this class action lawsuit bounced. I guess the attorneys weren’t paid enough. What a scam!

    1. Ed says:

      Got a check in mail and they put a stop payment on mine as well.

      1. Christine Crawforf says:

        I too received a check and was told not creditable and returned it charged me 12.97 what a fake and awful way to crook people

  7. Liljohn Tutor says:

    Pos company lead me on to file many attempts for mod after covid releaf program now won’t accept payments been in forcloser twice will lose my home soon

  8. Emma Mathews says:

    We’ve had this mortgage company for three years they have changed our mortgage payments three times they’ve changed this year mortgage rate two times it’s went up they are a rip off you never can reach anybody you talk to somebody different every time in our mortgage payment just keeps going up and up our advise not to use this company they are a rip off I don’t know what they’re doing with our money our notes were 1700went up to 1900went up to 2000 now it’s went up to 2100 starting in December 2022 our mortgage note Do not you going to hire me an attorney

  9. Lisa Birge says:

    My mortgage was recently transferred to Shellpoint from Mr. Cooper. My situation is that my mortgage is in my mother’s name and she passed away in 2006. I wrote the lender and told them that I would be taking over the payments since I was already paying it as we lived together when the home was purchased in 1995. For real estate tax purpose it was the best solution but when she passed that changed and I no longer received the real estate tax discount that my mom had. But I continue to make the increased payments and sent the servicer the death certificate and all the appropiate documents and also mentioned I was doing so under the Garn St. Germaine act of 1982. Well, my loan was transferred to Shellpoint on 06/01/2022 and I wrote them recently to have my name on the loan and my mother’s remove as stated by the Garn St Germaine for succesor in interest but now I am being told I can’t because it is a conventional loan and that clause “someone buying your can not assume your loan under original terms.” As I understand the garn st germaine as a successor in interest, living in the home since purchased, and making the mortgage payments, I am able to assume the loan. I keeping having to send request to loan servicing. I also qualified for mortgage assistance under the cares act during the pandemic, so I believe that my case under garn st germaine would allow me to assume the loan. My mortgage is current and I am looking for assistance as I am nearly done paying of the loan (2 years).

  10. Sloan J Eloe says:

    My name was put on my father’s mortgage and they blamed it on my bankruptcy attorney hoping to write it it off that way. The property is in Iowa, I live in Minnesota. My father passed away last year and it’s in probate. Please add me

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.