The companies were alleged to have improperly paid and received kickbacks related to settlement services
PHH and Realogy Holdings have obtained final approval from a California federal judge for their $17 million settlement to resolve a consumer class-action lawsuit.
The settlement also involves subsidiaries and affiliates of both companies.
PHH and Realogy were initially sued in November 2015 over allegations that they improperly paid and received kickbacks, referral fees, or other things of value in connection with the referral of title insurance and other settlement services in violation of RESPA.
The settlement agreement, which followed more than a year of litigation and discovery, received preliminary approval in January.
"We are very proud of this result, which provides class members with cash payments of approximately 17.7% of the title-, escrow-, and closing-related charges they paid in connection with the qualifying mortgage loans, which is an average payment of over $360 to each of the 32,217 class members," said Daniel Robinson, who was one of the appointed settlement class counsels.
Class members include individuals who, on or after November 25, 2014, and on or before November 25, 2015, closed on any mortgage loan originated by PHH, PHH Mortgage, PHH Home Loans, or their affiliates and paid title-, escrow-, or closing-related charges in connection with that mortgage loan to Title Resource Group or its affiliates.
"This was a hard-fought case every step of the way. We are extremely pleased to have been able to obtain such a tremendous result for the class, one that is virtually unequaled in RESPA cases," said Evan Borges, also a settlement class counsel.
