PHH Mortgage Corporation, which rebranded as Onity Mortgage Corporation in March 2026, has been the defendant in a long string of foreclosure-related lawsuits and government enforcement actions. The company has paid tens of millions of dollars to resolve claims over improper foreclosure documentation, illegal servicing fees, wrongful foreclosures on active-duty military members, and misleading default notices. Any PHH Mortgage foreclosure lawsuit discussion in 2026 has to cover both the big resolved cases and the class action settlements still paying borrowers now.
Settlements Paying PHH Borrowers in 2026
Two class actions are actively distributing money to PHH borrowers as of mid-2026, and they work very differently.
Williams v. PHH — Misleading Default Notices
Williams et al. v. PHH Mortgage Corporation accused the company of sending notices of default that warned PHH would “immediately accelerate and foreclose” if the borrower did not cure by a stated deadline. Plaintiffs Tonia Williams and Beverly Dantzler argued PHH could not legally do that, because federal rules bar servicers from starting foreclosure until a loan is at least 120 days delinquent — about 30 days past the notice’s cure deadline.1Williams PHH Settlement. Williams et al. v. PHH Mortgage Corporation Settlement The suit alleged violations of the federal Fair Debt Collection Practices Act, California’s Rosenthal Act, and two North Carolina debt collection statutes.2Top Class Actions. $1.5M PHH Mortgage Corp Misleading Default Notices Class Action Settlement PHH denied the allegations.
The $1.5 million settlement is split into three $500,000 funds covering three classes:
- Nationwide FDCPA class: borrowers whose loans PHH acquired while already 30 or more days delinquent and who received a notice of default between December 18, 2022, and December 15, 2025.
- California class: California borrowers serviced by PHH who received a notice of default in the same window.
- North Carolina class: North Carolina borrowers serviced by PHH who received a notice of default between January 14, 2021, and December 15, 2025.
The settlement covers an estimated 96,000 borrowers.3ClassAction.org. $1.5M PHH Mortgage Corporation Settlement Ends Litigation Over Allegedly Unlawful Notice Letters You do not need to file a claim. Payments go out automatically to anyone who did not opt out by the May 5, 2026 deadline. Checks are mailed to the address PHH has on file, or you can register for electronic payment through the settlement website. The final approval hearing is scheduled for June 9, 2026, and payments are expected within 75 days of final approval becoming non-appealable.4Williams PHH Settlement. Williams PHH Settlement FAQs The claims administrator, Eisner Advisory Group LLC, can be reached at 1-844-329-3048.
Munoz v. PHH — Mortgage Insurance Kickbacks
Munoz et al. v. PHH Corp., originally filed in June 2008, alleged PHH used reinsurance deals with its own subsidiary, Atrium Insurance Corporation, to collect illegal kickbacks for referring borrowers to private mortgage insurers in violation of the Real Estate Settlement Procedures Act.5ClassAction.org. PHH Settlement Offers $875 Payouts to Resolve Class Action Over Alleged Mortgage Insurance Kickbacks The settlement pays $875 per loan to class members who obtained a residential mortgage originated or acquired by PHH between January 1, 2007, and December 31, 2009, and who bought private mortgage insurance covered by PHH’s captive reinsurance arrangements.6ClassAction.org. Munoz et al. v. PHH Corp. et al. Notice
Unlike Williams, Munoz requires you to file a claim. The claim deadline is August 11, 2026. You can file online at PHHMISettlement.com or by mail through claims administrator JND Legal Administration. A final approval hearing was held December 17, 2025.7PHH MI Settlement. Munoz v. PHH Settlement Important Dates
The $45 Million Multistate Settlement
The largest resolved enforcement action against PHH came on January 3, 2018, when 49 state attorneys general, the District of Columbia, and more than 45 state mortgage regulators reached a $45 million settlement over PHH’s servicing of mortgages between January 2009 and December 2012.8State of New Jersey Office of the Attorney General. Multistate Settlement With PHH Mortgage Corporation9Nebraska Attorney General. State Attorneys General and State Mortgage Regulators Reach $45 Million Settlement With PHH Mortgage
The money was divided into roughly $31.5 million in direct payments to harmed borrowers, about $8.8 million in administrative penalties to state regulators, and $5 million in attorneys’ fees to the twelve lead investigating states.10Commonwealth of Virginia Office of the Attorney General. PHH Consent Judgment Borrowers who lost homes to PHH foreclosure during the covered period were eligible for a minimum payment of $840. Those who faced a foreclosure filing but kept their homes could receive at least $285.11Texas Attorney General. Texas Attorney General Settlement With PHH Mortgage The settlement payments have long since been distributed.
The underlying investigation documented systemic problems with PHH’s foreclosure paperwork, including “unauthorized execution, inconsistent signatures, faulty assignment, improper certification and notarization,” and poor oversight of outside foreclosure counsel.12Oregon Division of Financial Regulation. PHH Consent Order With Exhibits Illinois regulators separately fined PHH $290,000 after finding that in 19 foreclosure files PHH employees had signed affidavits knowing they would later be altered, and that at least four people had signed documents using a single employee’s name — of 19 affidavits reviewed, 16 bore the same name but showed at least five distinct handwriting styles.13HousingWire. Illinois State Agency Fines PHH Mortgage in Robo-Signing Probe PHH disputed the Illinois findings.
The 2018 consent order required PHH to adopt new servicing standards, validate the promissory note before starting any foreclosure, run a chain-of-title review, and ensure affidavits were based on personal knowledge. PHH was also barred from paying incentives that could encourage “undue haste or lack of due diligence” in document preparation.14Commonwealth of Massachusetts. PHH Mortgage Consent Order One important limit: the settlement did not release PHH from liability for misconduct after January 1, 2013.
Wrongful Foreclosures on Military Servicemembers
In February 2019, the U.S. Department of Justice settled a lawsuit alleging PHH foreclosed on six active-duty servicemembers’ homes between 2010 and 2012 without the court orders the Servicemembers Civil Relief Act requires.15U.S. Department of Justice. United States v. PHH Mortgage Corp. The SCRA bars lenders from foreclosing on active-duty members (and for a period after service) without court approval, provided the mortgage predates the member’s service.
PHH paid $750,000, divided equally at $125,000 per servicemember, and agreed to SCRA compliance training and ongoing monitoring.16National Mortgage Professional. $750K for Settling SCRA Violations PHH did not admit wrongdoing. The settlement reserves the government’s right to reopen the case if PHH breaches it.17Yahoo Finance. PHH to Pay $750K to Members Who Lost Homes
HUD “Junk Fee” Settlement
On January 13, 2025, HUD announced a settlement with PHH over “pay-to-pay” or “convenience” fees charged for making mortgage payments by phone or online. HUD said those fees violated FHA rules because processing payments is a basic servicing duty PHH was already being paid to perform.18HousingWire. HUD Settles With PHH Over Alleged Mortgage Payment Fees That Violated FHA Rules
The settlement covers roughly 490,000 transactions between May 2021 and February 2023, affecting about 51,500 borrowers. PHH agreed to pay approximately $3.465 million in restitution plus $245,000 to HUD. Eligible borrowers received automatic credits to their accounts, or checks if they no longer had a PHH-serviced loan.19Compliance Alliance. HUD Reaches Historic Settlement With PHH Mortgage Corporation to Refund Wrongfully Charged Junk Fees PHH stopped charging the fees in February 2023 and did not admit fault. A separate pay-to-pay class action, Jones v. PHH Mortgage Corporation, was filed in March 2023 in the District of New Jersey, alleging charges of up to $19.50 per transaction for electronic payment processing not authorized by borrowers’ mortgage agreements.
If You’re Currently Facing Foreclosure by PHH
The patterns borrowers have been raising in individual cases say a lot about where PHH foreclosures run into trouble.
Dual tracking is one of the recurring complaints. Castillo v. PHH Mortgage Corporation, filed in April 2026 in the Middle District of Tennessee, alleges PHH pursued foreclosure while a loss mitigation application was still open, and that PHH refused to produce internal servicing notes, calling them “proprietary and confidential.” The complaint cites 15 CFPB consumer complaints to argue the conduct is part of a broader pattern.20Mortgage Professional America. Borrower Says PHH Mortgage Forced Foreclosure With Short Sale Still Pending Federal servicing rules generally prohibit a servicer from moving forward with foreclosure while a complete loss mitigation application is pending.
Standing and document challenges are the other common thread. In March 2025, Eliezer Taveras sued PHH, Ocwen Loan Servicing, and U.S. Bank in Miami-Dade County Circuit Court seeking to void a 2017 foreclosure judgment. The complaint alleges one assignment falsely identified an Ocwen employee as a MERS officer, another carried a fabricated retroactive date, and the original foreclosure complaint was unsigned and unverified in violation of Florida procedural rules.21Trellis Law. Eliezer Taveras vs. PHH Mortgage Corporation et al. Not every such challenge succeeds. In PHH Mortgage Corp. v. Labossiere, a New Jersey appellate panel rejected a borrower’s attack on PHH’s standing, on MERS-based assignments, and on a notarization handled through plaintiff’s counsel’s office, affirming that MERS’s nominee role is a recognized agency relationship under New Jersey law.22New Jersey Courts. PHH Mortgage Corp. v. Labossiere
Many of the recent individual complaints trace back to the Ocwen-to-PHH servicing transition. Borrowers have reported receiving no notice that their loan had moved, continuing to send payments to Ocwen, and then receiving delinquency or foreclosure notices from PHH. They have also reported inaccurate payment histories, conflicting information from different representatives, and being shuffled between departments.23Nadia Kilburn. The Ocwen to PHH Nightmare
Why You May See Two Company Names on Court Papers
Ocwen Financial Corporation acquired PHH Corporation in October 2018 for about $360 million, and their servicing operations merged by June 2019.24Onity Group Inc. Ocwen Financial Intends to Close Its Acquisition of PHH Corporation Ocwen rebranded as Onity Group Inc. in June 2024, and on March 23, 2026, PHH Mortgage officially became Onity Mortgage Corporation.25Onity Group Inc. Onity Group Officially Rebrands PHH Mortgage as Onity Mortgage Court filings since the rebrand often list both names. One 2026 case in the Eastern District of California identified the defendant as “PHH Mortgage Services aka Onity Mortgage” alongside “Onity Group, Inc. f/k/a Ocwen Financial Corporation.”26GovInfo. Agno v. PHH Mortgage Corp. If you’re reviewing paperwork or searching court dockets, check both the PHH and Onity names.