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Commonly Asked Questions


WHAT IS A CLASS ACTION?

Answer:

A class action is a type of lawsuit in which one or a few named plaintiffs bring suit on behalf of all of the members of a
similarly situated group to recover damages for all of the group, without the necessity of each member filing an individual
lawsuit or appearing as an individual plaintiff. Cases are certified as class actions by courts where the claims raise basic issues
of law or fact that are common to a large group, making it fair, efficient and effective to bind all class members to the orders
and the judgments in the case without the necessity of prosecuting/hearing essentially the same claims over and over again.
Use of a class action eliminates the necessity of filing multiple suits, and assures that all class members who do not exclude
themselves from the Class are bound by the results of the lawsuit.

WHAT IS THIS CLASS ACTION ABOUT?

Answer:

The complaint in the Action alleges that PHH Corp., PHH Mortgage Corp., PHH Home Loans, LCC, and Atrium Insurance Corp. (“Atrium”) (collectively “Defendants”) violated section 8 of the Real Estate Settlement Procedures Act (“RESPA”) 12 U.S.C. § 2607. In particular, the complaint alleges that PHH required certain borrowers to pay for private mortgage insurance with one of four primary mortgage insurers. These private mortgage insurers entered into reinsurance agreements with PHH’s affiliate, Atrium, whereby Atrium would assume some of the risk on the loan in exchange for a portion of the premiums paid by the borrower. Plaintiffs allege that Atrium assumed either no real or an insufficient amount of the risk and, thus, the reinsurance arrangement was a disguised form of rebate to PHH.

Defendants deny the allegations of the complaint and contend the agreements are appropriate and standard reinsurance involving meaningful transfer of risk, and that Atrium paid claims under its reinsurance agreements. The Defendants assert numerous defenses to this Action. The Court has not formed any opinion concerning the merits of the case. The Court has not ruled in favor of or against Plaintiffs on the merits of any of their claims.

WHO IS INCLUDED IN THE CLASS?

Answer:

On June 11, 2015 the Court ordered that the Action may proceed as a class action lawsuit on behalf of the following Class:

All persons who obtained residential mortgage loans originated and/or acquired by PHH and/or its affiliates on or after June 2, 2007 through December 31, 2009, and, in connection therewith, purchased private mortgage insurance and whose loans were included within PHH’s captive mortgage reinsurance arrangements.

To be a member of the Class, you must meet the description above. If you do not meet the Class definition, this Notice does not apply to you. If you are uncertain whether you are a Class Member, contact Plaintiffs’ attorney or your own attorney. Do not call PHH.

WHAT DOES THE PLAINTIFF SEEK IN THIS ACTION?

Answer:

Plaintiffs in this action seeks a judgment (1) declaring that Defendants violated certain laws in conjunction with the reinsurance agreements; and (2) awarding to Plaintiffs and class members damages plus costs including reasonable attorneys’ fees and expenses.

The ruling by the Court allowing the case to proceed as a class action does not mean that any money or other relief will be obtained for the class because these are contested issues that have not yet been decided. Rather, the ruling means that the final outcome of this lawsuit—whether favorable to the Plaintiffs or to Defendants—will apply in like manner to every Class Member. In other words, the outcome of this lawsuit will apply to all individuals described in the Court’s class certification order summarized above who do not timely elect to be excluded from the Class (see below).

Again, Defendants deny they violated any laws and contend they are not liable to any Class Members. This Notice is not an admission by Defendants that the claims asserted by Plaintiffs in this case are valid, or that there has been any wrongdoing or violation of law.

WHO ARE THE ATTORNEYS FOR THE PLAINTIFFS AND CLASS?

Answer:

The names and addresses of the class counsel, appointed by the Court, who represent the Plaintiffs and certified Class are:

KESSLER TOPAZ MELTZER & CHECK, LLP
Edward W. Ciolko
Terence S. Ziegler
Donna Siegel Moffa
Amanda R. Trask
Natalie Lesser
280 King of Prussia Road
Radnor, PA 19087
Telephone: (610) 667-7706
Facsimile: (610) 667-7056
* Lead Class Counsel

BRAMSON, PLUTZIK, MAHLER & BIRKHAEUSER, LLP
Alan R. Plutzik (SBN 077785)
2125 Oak Grove Blvd., Suite 120
Walnut Creek, CA 94598
Telephone: (925) 945-0770
Facsimile: (925) 945-8792

BERKE, BERKE & BERKE
Ronald J. Berke
420 Frazier Avenue
Chattanooga, TN 37402
Telephone: (423) 266-5171
Facsimile: (423) 265-5307 

TRAVIS, CALHOUN & CONLON, P.C.
Eric G. Calhoun
1000 Providence Towers East
5001 Spring Valley Road
Dallas, Texas 75244
Telephone: (972) 934-4100
Facsimile: (972) 934-4101

WHAT ARE MY OPTIONS?

Answer:

If you are a Class Member, you have the choice of staying in the Class or excluding yourself from the Class. Each choice has risks and consequences. You have the right to discuss your decision with Plaintiff’s counsel, Class Counsel or your own attorney. You have the right to be notified of any proposed settlement or dismissal of the Class claims.

 
1. If you stay in the Class, you will be bound by the result of the lawsuit, whether that result is favorable or unfavorable. If the Court finds in favor of the Class, you will be entitled to a share of the recovery, if there is any recovery and if the Court awards you a share. If the Court finds in favor of the defendants, you will recover nothing and any claim you would have against the Defendants related to the allegations in the operative complaint in this Action, and certain related matters, will be forever barred.

 
2. If you exclude yourself from the Class, you will not be bound by the result of this case. Accordingly, should the Class recover money from Defendants, whether by settlement or judgment, you will not share in the recovery. Nor will you be bound by any adverse result in this case. You will retain the right to pursue any individual claims against Defendants and hire your own attorney, unless otherwise barred.

If you are a Class Member, you will automatically be considered a member of the Class unless you request to be excluded. YOU NEED NOT DO ANYTHING IF YOU WISH TO BE INCLUDED. THERE IS NO NEED FOR YOU TO CALL, WRITE OR SEND ANYTHING AT THIS TIME IN ORDER FOR YOU TO REMAIN A MEMBER OF THE CLASS.

 
If you wish to exclude yourself from the Class, please send a letter referencing “PHH reinsurance case,” and stating your name and address, and that you wish to be excluded from the Class, to PHH Reinsurance Case Notice Administrator, c/o Rust Consulting, Inc., P.O. Box 2452, Faribault, MN 55021-9149. The letter must be received on or before December 26, 2015. If you mail a request for exclusion, you bear the risk of any delay or failure of delivery.

DO I STILL HAVE TO MAKE MY MONTHLY MORTGAGE PAYMENTS?

Answer:

YES. This Notice, and the Action itself, has no effect on whether you need to make payments on your home mortgage loan. If you continue to have a loan with PHH, or continue to have a loan that PHH originally made to you, you are required to continue to make payments on the loan.

WHERE MAY I OBTAIN ADDITIONAL INFORMATION?

Answer:

You MAY DISCUSS THIS WITH YOUR OWN ATTORNEY. You may EXAMINE THE COURT’S FILE regarding this litigation during regular business hours, at the office of the Clerk of the Eastern District Court of California, Room 1501 on the 1st Floor of the Robert E. Coyle United States Courthouse, 2500 Tulare Street, Fresno, 93721. You may also call the toll-free number (888) 334-6147.

PLEASE DO NOT CONTACT THE COURT OR DEFENDANTS CONCERNING THIS CASE.

Disclaimer

This website is supervised by counsel and the Court and is controlled by Rust Consulting, the Settlement Administration firm that handles all aspects of notice and claim processing. This is the only authorized website for this litigation. Please do not rely on other sites that set out different and unauthorized information. If you have any questions, please contact the Settlement Administrator.

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