The Newest Lawsuit: Reverse Mortgage Practices
A new class action, Mattia v. PHH Mortgage Corporation, was filed in March 2026 in federal court in New York, alleging PHH Mortgage and affiliate Onity Group engaged in fraudulent and predatory practices in how they originate and service reverse mortgages, a type of loan often used by older homeowners to access home equity. The named plaintiff alleges that after a loved one death, she promptly notified PHH the loan would be repaid once the home was sold, but that PHH failed to provide requested mortgage documents and payment history, falsely claimed foreclosure proceedings had begun, and used an unsupervised third-party vendor who allegedly entered the home and destroyed personal belongings without authorization.
The lawsuit seeks to represent everyone who obtained a reverse mortgage from PHH, or whose reverse mortgage was serviced by the company, and was harmed by similar conduct, asserting claims under the federal Fair Debt Collection Practices Act, the Real Estate Settlement Procedures Act, and New York consumer protection law.
Part of a Recurring Pattern for PHH
This is not an isolated complaint. PHH, one of the largest mortgage servicers in the country, has faced a series of legal actions and settlements over the years covering different aspects of loan servicing. These include a 1.5 million dollar settlement resolving claims that PHH sent misleading default notices threatening foreclosure sooner than legally accurate, a 2.77 million dollar settlement over allegedly illegal convenience fees charged for online or phone mortgage payments, and an 875 dollar per-person settlement resolving claims that PHH overcharged for mortgage insurance through reinsurance arrangements that amounted to disguised kickbacks.
PHH has also reached a settlement with the US Department of Housing and Urban Development over junk servicing fees charged to FHA borrowers, requiring credits or refunds to affected homeowners. None of these matters involved an admission of wrongdoing by PHH, which is standard in settlements of this kind, but the recurring pattern across different aspects of the servicing relationship, default notices, payment fees, insurance charges, and now reverse mortgage handling, is a notable feature of the company litigation history.
Where the Reverse Mortgage Case Stands
As of this update, the reverse mortgage class action remains in its early stages, with no ruling on class certification, settlement, or the merits of the allegations. PHH has not been reported to have publicly responded in detail to the specific claims in this newest case.
For borrowers or family members currently dealing with a PHH-serviced reverse mortgage, particularly after the death of the original borrower, keeping thorough written records of all communications and requests is a practical protective step regardless of how this particular lawsuit resolves, since servicing disputes often turn on exactly what was requested, promised, and documented.
How to Get Legal Help
If PHH Mortgage services a reverse mortgage connected to you or a family member, especially after the borrower has passed away, keep detailed written records of every communication, request for documents, and payment history, and get everything in writing where possible. If you believe you have been treated unfairly, consulting an attorney experienced in mortgage servicing and elder financial protection issues is the practical next step.
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PHH Mortgage Lawsuit: The Reverse Mortgage Class Action: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What does the newest PHH Mortgage lawsuit allege?
That PHH engaged in predatory reverse mortgage servicing practices, including failing to provide requested documents, falsely claiming foreclosure had begun, and using an unsupervised vendor who allegedly damaged a deceased borrower home without authorization.
Is this PHH first lawsuit?
No. PHH has settled a series of prior cases over different servicing issues, including misleading default notices, illegal payment convenience fees, and mortgage insurance kickback allegations, along with a settlement with HUD over junk servicing fees.
Has PHH admitted wrongdoing in any of these cases?
No. PHH resolved its prior settlements without admitting wrongdoing, which is standard in class action and regulatory settlements, and has not been reported to have responded in detail to the newest reverse mortgage allegations.
Is the reverse mortgage case resolved?
No. As of this update it remains in early stages, with no ruling on class certification, settlement, or the underlying merits of the claims.
What should affected borrowers or family members do?
Keep detailed written records of all communications, document requests, and payment history related to the loan, and consult an attorney experienced in mortgage servicing or elder financial protection if you believe you were treated unfairly.