PHH Mortgage Lender-Placed Insurance Class Action Settlement

Class Eligibility

To see if you will be affected by this class action, you first have to determine if you are a member of the Settlement Class.

The “Settlement Class” includes all borrowers in the United States who, within the Class Period (as defined below), were charged by PHH Mortgage Corporation under a hazard, flood, flood gap, or wind-only LPI Policy for Residential Property, and who, within the Class Period, either (i) paid to PHH the Net Premium for that LPI Policy or (ii) did not pay to and still owe PHH the Net Premium for that LPI Policy. Excluded from the Class are: (i) individuals who are or were during the Class Period officers or directors of the Defendants or any of their respective affiliates; (ii) any justice, judge, or magistrate judge of the United States or any State, and their spouses; (iii) borrowers who only had an LPI Policy that was cancelled in its entirety such that any premiums charged and/or collected were fully refunded to the borrower or the
borrower’s escrow account; and, (iv) all borrowers who file a timely and proper request to be excluded from the Class.

The “Class Period” is from January 1, 2006 through July 31, 2015.

“LPI Policy” means a lender-placed residential hazard, flood, flood gap, or wind-only insurance policy or policies issued by ASIC, SGIC, or VIIC, or another insurance company and placed pursuant to a mortgage loan agreement, home equity loan agreement, or home equity line of credit serviced by PHH to cover a borrower’s failure to maintain the required insurance coverage on the residential property securing the loan.

Estimated Amount


A credit or payment equal to 6% of the Net Premium on the LPI Policy issued during the Class Period to claimants who were charged for a flood, wind or hazard LPI Policy on or after February 1, 2014;

A credit or payment equal to 11.5% of the Net Premium on the LPI Policy issued during the Class Period to claimants were charged for a hazard LPI Policy on or before January 31, 2014.

Proof of Purchase


Case Name

In re: PHH Lender Placed Insurance Litigation,
Case No. 1:12-cv-01117
U.S. District Court for the District of New Jersey

Case Summary

This lawsuit involves lender-placed insurance (“LPI”), which is insurance (hazard, flood, flood gap, or wind-only) that is placed on a borrower’s property to protect the borrower and mortgage lender when the borrower’s insurance policy lapses, or when the borrower does not maintain a homeowner’s insurance policy that is acceptable to the mortgage lender. When an LPI Policy is placed pursuant to law or the borrower’s mortgage contract, PHH pays premiums to the LPI insurer who writes the policy, and then PHH charges the borrowers for those premiums.

The Plaintiffs have brought claims on behalf of all persons in the Settlement Class (as defined in response to Question 5). Plaintiffs allege that when a borrower was required to have insurance for his or her property pursuant to a residential mortgage or home equity loan or home equity line of credit, and evidence of acceptable coverage was not provided (for example, when the insurance policy did not exist or had lapsed), PHH would place insurance in a manner such that PHH allegedly received an unauthorized benefit. Plaintiffs allege further that PHH did so primarily to receive alleged “kickbacks” in the form of expense reimbursements or expense subsidies from the Assurant Defendants. Plaintiffs also allege that the way in which LPI policies were obtained and placed caused the amounts charged to be excessive.

All Defendants expressly deny Plaintiffs’ allegations and assert their actions are fully authorized under the mortgage instruments and by law. They also expressly deny that they did anything wrong. There has been no court decision on the merits of this case and no finding that Defendants committed any wrongdoing.

Settlement Pool






Gallo/Finch/Burroughs Settlement Center

c/o JND Legal Administration

PO Box 6878

Broomfield, CO 80021