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A mortgage holder with a defaulted home loan has settled a potential class action lawsuit with PHH Mortgage Corp. after he alleged that the company inflated property inspection fees.
Kirk Culver sued the company in 2020 and said in a proposed class action lawsuit that PHH improperly charged him markups on its costs for third-party property inspections for defaulted loans, Law360 reports.
According to the claim, PHH contracted with a third-party vendor that used a computerized system to generated property inspections every 20 to 30 days, and with each inspection, PHH added between $15 to $19.50 to Culver’s mortgage.
However, the actual cost of the inspections were “much less than what was charged to plaintiff,” the class action lawsuit said.
Although Culver sought to represent other mortgage borrowers who had allegedly been through the same thing, his counsel told Law360 that after discovery they found “that the claims were not ripe for class certification.”
“We, therefore, turned our attention to resolving our individual client’s claim and damages, and we are very pleased that we were able to do so,” Zachary Ludens of Zebersky Payne Shaw Lewenz LLP said.
Ludens said that deal spelt the end of the Class claims in terms of Culver being the Class Representative.
In June, PHH tried to get the case tossed out, but U.S. District Judge Paul G. Byron ruled in Culver’s favor and allowed his claims of breach of contract and violations to the Fair Debt Collection Practices Act, as well as allegations of violations of the Florida Consumer Collection Practices Act, Law360 reports.
PHH said in its motion for dismissal that it did not qualify as a debt collector and shouldn’t be subjected to the laws Culver was suing under. However, Judge Byron cited PHH’s statements that include an amount due, a $72.22 late fee that “may be charged,” and a clear statement saying that the letter is from a “debt collector attempting to collect a debt,” as evidence it does act as a debt collector.
“If the instant communication — which includes clear language identifying defendant as a debt collector attempting to collect a debt, a potential late fee of $72.22 and a total amount due — does not qualify as a debt collection communication, it is difficult to comprehend what would.”
Last September, PHH reached a $12.6 million class action settlement with homeowners who alleged that the company’s practice of charging what it referred to as “processing fees” when customers made their home loan payments online or over the telephone — fees ranging from $17.50 to $7.50 — violated the Federal Fair Debt Collection Practices Act and were in breach of their mortgage contracts.
Have you ever taken out a loan with PHH? Tell us about your experience in the comments section!
Culver is represented by Jordan A. Shaw and Zachary D. Ludens of Zebersky Payne Shaw Lewenz LLP, J. Matthew Stephens of Methvin Terrell Yancey Stephens & Miller PC and Darren R. Newhart of Newhart Legal PA.
PHH is represented by Dale A. Evans Jr. of Locke Lord LLP.
The PHH Inspection Fee Class Action Lawsuit is Culver v. PHH Mortgage Corp., Case No. 6:20-cv-02292, in the U.S. District Court for the Middle District of Florida.
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77 thoughts onMortgage Holder Settles Lawsuit With PHH Mortgage Corp After Alleging Inflated Inspection Fees
My roof was almost taken off by high winds Friday March 3, 2023. I paid $600.00 out of pocket for a temporary patch job. My insurance company took less than two weeks to inspect the damage and cut a check for me March 15. PHH Reverse Mortage required me to endorse the check and overnight it to them, which cost me $28.75. They let me know when they got it. Then they sent forms in the mail April 3, 2023 -A WHOLE MONTH AFTER THE WIND DAMAGE! They required several pages of four different documents to be sent to them, which I paid FedEx $31.13 to do, and it arrived the next day April 4th. Now they are telling me they did receive the documents, but when someone scanned them into their system, the cover page with vital info from my insurance company was not scanned correctly, and they REQUIRE me to SEND THAT DOCUMENT TO THEM AGAIN. I asked my insurance company to fax it to them, which I don’t know yet if they got it, but I was informed that even if they get the fax, it will be ANOTHER 5 to 10 business days before they will get back to me. More bad storms are predicted, AGAIN, and I told PHH that if my roof was totally destroyed in the next storm because of them delaying my insurance check, I WOULD SUE THEM! Would I have a case against them for this outrage? It is their fault NOT mine. I wish to God I had never heard of PHH. When I took out this Reverse Mortgage it was Ocwen, before that, I went through a company called Liberty. WHY do they keep changing owners?
Same. Original loan with Ocwen and then sold to PHH.
I have paid over 30k+ on my account in the last 6 months thinking it would be applied to a 28k deferred balance. Not! It was applied to the first mortgage and now they want the deferred amount paid in full or refinanced! And on top of that, I received a letter stating I owed 13k+ in Assessment fees?!! And of course, there’s no itemization for the fees! I’ve already contacted the law firm that settled the class action lawsuit against them. This company is a crook!! And I won’t call anymore. I can never speak to someone I can understand. This company is just horrible!!!!
SAME. They charged fees, couldn’t explain them, said payments were missing then foreclosed. Horrible company. How do I join the class action
I got an adjustable loan through USAA, and it was sold it to Ocwen, than PHH. I have more than 15 years of the 30 year amortization paid off, so almost equal amounts went to principal and interest.
.Each time the interest rate is adjusted it also starts new Amortization table as if it was a new loan So less funds go towards principal and of course more towards interest. With the the latest interest adjustment, it will take 48 months to get back to the same dollar amount that was going to principal as before the interest adjustment. Is this standard industry practice or is PHH following another questionable practice they have been known for in the past?.I do not recall this practice being explained to me when I got the original loan.
I need help with phh also
PHH mortgage has been a HORRIBLE experience. They just issued us a check for $24,456.89 to go to our contractors for roof replacement from hail damage. It came UPS, yesterday, Oct. 11, we deposited it in our savings to pay those contractors in the am. PHH called us today 5 pm and said they put a stop payment on the check. Anyone know a good mortgage lawyer or can help us?
I had oqwen since 2005 they send me to PHH Mortgage
PHH Mortgage purchased insurance for me, when I already had insurance. They had the declaration page. But chose to buy insurance for me anyway. PHH misread a letter, somehow, and ignorantly concluded that I didn’t have insurance. And when I talk to them about paying off my house, I was told about an additional charge of $1,400 added to my closing costs. When I inquired about this cost, PHH said that the closing information isn’t available to me. I wanted to know upfront costs and they refused. My closing is soon and I’m afraid of PHH overcharging me. What can I do to prevent them?
PHH is also over charging me
I did too purchase insurance and from phh
After my mortgage was transferred to PHH Mortgage, I first noticed them “changing” the rate fee for paying monthly mortgage payments. Things didn’t look right with my pay down balance from the time I started paying on the loan. At this rate at mortgage maturity date on a thirty year loan, I will have paid down a little less than half of the mortgage! Anyone else with a simular issue?
What did you resolve this?
After my Sister in Law passed away, she left everything to my Wife who spent a year and a half in probate, then paid all the monthly loans and interest that incurred to bring payments up to date, but for the last 4 months, PHH has been charging her an assessment expense of $2100 every month. The Federal Housing Authority says that an inspection may occur once after a payment is in default. I received next months payment due and the assessment fee is still there. I’m in California. Any advice is greatly appreciated.
I had my mortgage thru Ocwen and the PHH took over, I cannot stand this company. They are asking for payments on the loan 2 weeks before the first of the month and cannot find out what the grace period is before they charge a late fee. I have been charged a fee for making phone call payments in the past, don’t do that anymore. I ill never send in a payment in the mail again because they always say they got it late so I pay my mortgage on line to them. I didn’t even know there was a settlement going on. I am thinking of refinancing just to get away from them.
It was truly a nightmare. for me. I experienced some of the same issues that others have posted. I just hope everyone is treated fairly during this process and awarded the monies they are due. It’s very disheartening that families went through this financial turmoil