Borrowers who obtained a mortgage from PHH between January 2007 and December 2009 and paid for private mortgage insurance may be eligible for $875 per loan from a class action settlement over alleged insurance kickbacks.
If you had a mortgage through PHH Corporation during that period, your private mortgage insurance premiums may have been inflated by an illegal kickback scheme. A federal court has granted final approval to a settlement resolving claims that PHH and its affiliate Atrium Insurance funneled portions of borrowers’ mortgage insurance premiums into sham reinsurance arrangements that violated federal law.
Each eligible class member receives a fixed $875 per qualifying loan – not a pro rata share that shrinks as more people file. PHH denies wrongdoing but agreed to the settlement to resolve the litigation.
Who can file a claim?
To qualify for the $875 payment, you must meet all of the following criteria:
- You obtained a residential mortgage loan that was originated or acquired by PHH Corporation, PHH Mortgage Corporation, or PHH Home Loans LLC between January 1, 2007 and December 31, 2009.
- You purchased private mortgage insurance (PMI) on that loan.
- Your loan was included in PHH’s captive mortgage reinsurance agreements with Atrium Insurance Corporation.
- You are the original borrower, or a successor, heir, or assignee of the original borrower.
Had a PHH mortgage between 2007 and 2009 with private mortgage insurance? You could be owed $875 per loan.
Check My EligibilityHow much can class members receive?
Each eligible class member will receive $875 per qualifying loan. This is a fixed amount – it will not be reduced based on how many people file claims. Key details:
- Fixed payment: $875 for each mortgage loan that qualifies. If you had multiple qualifying loans with PHH during the class period, you can receive $875 for each one.
- Payment method: Checks will be mailed to eligible class members who submit a valid claim form.
- No reduction: Unlike many class action settlements where the payout shrinks as more people file, this settlement guarantees the full $875 per loan regardless of claim volume.
How to claim a mortgage insurance payment
Class members can submit the online claim form at PHHMISettlement.com or download and mail a paper claim form to the settlement administrator. The claim deadline is August 11, 2026 (11:59 p.m. PT for online submissions, or postmark date for mailed forms).
Munoz v. PHH Corp. Settlement, c/o JND Legal Administration, P.O. Box 91304, Seattle, WA 98111
Phone: 1-855-779-8982
What proof or documentation is necessary to submit a claim?
- Unique ID and PIN: You need the ID number and PIN from the settlement notice you received. If you did not receive a notice, contact the settlement administrator at 1-855-779-8982 to check your eligibility.
- Property address: You must provide the address of the property associated with your PHH mortgage.
- Co-borrower names: If applicable, include the names of any co-borrowers on the loan.
- No receipts needed: You do not need to provide mortgage statements, insurance documents, or other financial records. Eligibility is verified against the administrator’s and lender’s records.
Payout options
- Physical check mailed to your address
Settlement fund breakdown
The $29.4 million settlement fund covers:
When is the PHH mortgage settlement payout date?
The court granted final approval on December 19, 2025. Because final approval has already been granted, payments will be processed after the claim deadline of August 11, 2026 passes and the administrator verifies all submissions. No specific payout date has been announced yet, but payments are expected in late 2026 or early 2027.
Why did this class action settlement happen?
The lawsuit alleged that PHH Corporation, PHH Mortgage Corporation, PHH Home Loans, and Atrium Insurance Corporation violated Section 8 of the Real Estate Settlement Procedures Act (RESPA). RESPA prohibits kickbacks and fee-splitting arrangements related to mortgage settlement services.
Plaintiffs claimed that PHH required borrowers to purchase private mortgage insurance from specific insurers. Those insurers then entered into reinsurance agreements with Atrium Insurance – a PHH affiliate – where Atrium would supposedly assume some risk on the loans in exchange for a portion of the insurance premiums. The lawsuit alleged these reinsurance arrangements were shams – that Atrium took on little or no actual risk – and the premium-sharing amounted to illegal kickbacks that inflated costs for borrowers.
Is the PHH mortgage settlement legitimate?
Yes – this settlement has received full court approval. Here’s what confirms it:
- Case number: 1:08-cv-00759-MMB-BAM, filed in the U.S. District Court for the Eastern District of California
- Final approval: Granted by the court on December 19, 2025
- Defendants: PHH Corporation – one of the largest mortgage originators and servicers in the United States
- Official site: PHHMISettlement.com
- Regulatory backing: The CFPB separately took enforcement action against PHH for the same mortgage insurance kickback practices
The settlement is fully approved. Claims must be filed before August 11, 2026.
How much will I actually receive from the PHH mortgage settlement?
You will receive exactly $875 per qualifying mortgage loan. Unlike most class action settlements where the per-person amount depends on how many people file claims, this settlement provides a fixed dollar amount.
- One qualifying loan: $875
- Two qualifying loans: $1,750
- Three qualifying loans: $2,625
The amount will not be reduced based on the total number of claims filed. If you received a settlement notice with a unique ID and PIN, you are almost certainly eligible. Filing takes just a few minutes.
What actually happened in the PHH mortgage insurance kickback case?
Between 2007 and 2009, PHH Corporation and its affiliates originated or acquired thousands of residential mortgage loans. When borrowers put down less than 20% on their homes, PHH required them to purchase private mortgage insurance (PMI) – a standard industry practice.
The alleged scheme: PHH directed borrowers to specific mortgage insurers. Those insurers then entered into “reinsurance” agreements with Atrium Insurance Corporation – a PHH subsidiary. Under these agreements, Atrium was supposed to take on some of the default risk in exchange for a share of the insurance premiums borrowers paid.
The problem: Plaintiffs alleged that Atrium assumed little or no actual risk under these arrangements. The premium-sharing was essentially a kickback – money flowing from the mortgage insurer back to PHH’s affiliate – funded by the premiums borrowers were paying. This allegedly violated the Real Estate Settlement Procedures Act, which specifically prohibits kickbacks in mortgage transactions.
What PHH says: PHH denies all allegations and maintains the reinsurance arrangements were legitimate business transactions. The company agreed to the settlement to resolve the long-running litigation without admitting fault.
Why do companies settle RESPA lawsuits even when they deny wrongdoing?
Settlement does not mean admission of guilt. Companies settle for practical reasons:
- RESPA litigation can span over a decade – this case was filed in 2008 and is being resolved in 2026
- Mortgage lending regulations are complex, and jury outcomes are unpredictable
- The reputational damage from a public trial can harm relationships with regulators and business partners
- For borrowers, a settlement guarantees a fixed payout rather than risking nothing at trial
The court reviewed the settlement terms and confirmed they are fair and reasonable before granting final approval on December 19, 2025. Denying wrongdoing while settling is standard practice and has no effect on your right to file a claim and receive $875 per loan.