PHH Mortgage Escapes Part of Loan Payoffs Class Action

PHH Mortgage, a non-bank mortgage service and originator, doesn’t have to face a portion of a proposed class action about its accounting for insurance proceeds in loan payoff statements, a federal judge has ruled. That’s according to court documents, and as Law360.com reports.

Judge Robert Kugler of the U.S. District Court in New Jersey found that borrowers’ claims under the New Jersey Fraud Act should be thrown out because state law doesn’t apply. The borrowers were Maryland residents and their mortgage was secured by a home in Florida.

Kugler left intact another portion of the lawsuit claiming that PHH Mortgage violated the federal Truth in Lending Act.

Read the full article from Law360.com.

Source: themortgageleader.com