Top Class Actions  |  February 14, 2022

Category: Closed Class Actions

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Close up young african american biracial woman holding smartphone in hands, calculating domestic expenses - telephone payments - mortgage payment - roundpoint mortgage settlement
(Photo Credit: fizkes/Shutterstock)

RoundPoint Mortgage will pay $1.6 million as part of a settlement resolving claims it charged unlawful fees on telephone mortgage payments.

The settlement benefits borrowers on residential mortgages serviced by RoundPoint who paid a fee for a telephone payments between Jan. 1, 2016, and May 31, 2021. 

RoundPoint is a mortgage servicing company that actively purchases mortgages from Fannie Mae and Freddie Mac. According to the company’s website, RoundPoint’s consolidated services provide a “convenient single-source solution” to borrower needs.

But RoundPoint’s services may carry unlawful fees.

In a 2020 class action lawsuit against RoundPoint, plaintiffs challenge the mortgage servicers fees as unlawful under federal and state laws. The plaintiffs contend RoundPoint charges between $10 and $12 in convenience fees whenever a customer makes a mortgage payment over the phone. 

According to the RoundPoint class action lawsuit, these fees are unlawful and violate the federal Fair Debt Collection Practices Act (FDCPA) and various state debt collection laws. The borrowers also claim the convenience fees breached loan agreement terms.

RoundPoint hasn’t admitted any wrongdoing but agreed to resolve these claims with a $1.6 million settlement. 

Under the terms of the settlement, Class Members can receive a cash payment. After fees and costs, $846,915 is expected to form a settlement fund for payments to RoundPoint borrowers.

Payments will vary on a borrower by borrower basis depending on the amount they paid in convenience fees. Class Members who paid a larger amount in fees will receive a larger share of the settlement fund.

The RoundPoint telephone mortgage payment settlement settlement also includes non-monetary benefits. 

Under the settlement agreement, RoundPoint agreed to stop charging convenience fees on online and telephone mortgage payments for at least two years following final approval of the settlement.

The deadline for exclusion and objection is March 18, 2022. 

The final approval hearing for the RoundPoint telephone mortgage payment settlement is scheduled for April 15, 2022.

No claim form is required to benefit from the settlement. However, Class Members who wish to receive their payment electronically must submit a payment option form by April 15, 2022.

Who’s Eligible

The settlement benefits borrowers on residential mortgages serviced by RoundPoint who paid a fee for a telephone payment between Jan. 1, 2016, and May 31, 2021.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable.

Payment Option Form

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.

Payment Option Deadline

04/15/2022

Case Name

Elbert, et al. v. RoundPpoint Mortgage Servicing Corp., Case No. 3:20-cv-00250-MMC in the U.S. District Court for the Northern District of California

Final Hearing

04/15/2022

Claims Administrator

Elbert v. RoundPoint Mortgage c/o Kroll Settlement Administrator, LLC
P.O. Box 5324
New York, NY 10150-5324
833-942-3996

Class Counsel

James Kauffman
BAILEY & GLASSER LLP

Hassan Zavareei
Kristen G. Simplicio
TYCKO & ZAVAREEI LLP

Defense Counsel

Cheryl S. Chang
Jessica A. McElroy
BLANK ROME LLP

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16 thoughts onRoundPoint Mortgage Payment Fees $1.6M Class Action Settlement

  1. Brian McCall says:

    Received a settlement check from the class action lawsuit, the only problem is that is in my name and RoundPoint Mortgage. I cannot cash or deposit the check without the signature from RoundPoint mortgage. How do I get this resolved?

  2. Julie Rogers says:

    Round Point said I was 19 payments behind! I have Bank statements that I did pay! But in 70 years old and they took my house anyway..,but it on the market and sold it!!! I’m poor and can’t afford a lawyer 😔. But I made all my payments 😢😢😢😢😢 please help me,..

  3. Alan J Laatz says:

    The feds ought to get off their dead ass and close down this obvious corrupt company.

  4. Josephine True says:

    My mom had RoundPoint for years. First she had Embrace, then they sent us to Roundpoint Mortgage. When do we get the money from the settlement? So far, we only received $1.83. The settlement is 1.6M, how can we only get less than $2. That’s a joke, right? When we had them for years. Makes no sense. RoundPoint, gave us a hard time for awhile, then dumped us off to another servicing company.

    1. Julie Rogers says:

      Round Point said I was 19 payments behind! I have Bank statements that I did pay! But in 70 years old and they took my house anyway..,but it on the market and sold it!!! I’m poor and can’t afford a lawyer 😔. But I made all my payments 😢😢😢😢😢 please help me,..

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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.