PHH Mortgage Reverse Mortgage Class Action, Are You or Your Family a Victim?

A new class action lawsuit filed in March 2026 accuses PHH Mortgage Corp. and its parent company Onity Group Inc. of targeting elderly homeowners with predatory reverse mortgage practices — charging hidden fees, withholding documents from grieving families, and sending in unvetted vendors who illegally entered homes and destroyed personal belongings. No settlement exists yet. This article explains what happened, who the lawsuit covers, and what affected borrowers or their families can do right now.

Quick Facts

Field	Detail
Defendants	PHH Mortgage Corp. (now Onity Mortgage) and Onity Group Inc.
Plaintiff	Lisa Mattia, niece and executor of the estate of Lillian O’Keefe
Case Name	Mattia v. PHH Mortgage Corporation, et al.
Case Number	1:26-cv-01584
Court	U.S. District Court for the Eastern District of New York
Filed	March 17, 2026
Settlement	None — lawsuit is in active litigation
Who May Be Covered	People who obtained reverse mortgages through PHH Mortgage or whose loans were serviced by PHH and suffered harm
Laws Alleged to Be Violated	FDCPA, RESPA, New York General Business Law, New York Real Property Law
Plaintiff’s Attorneys	Pastore LLC; Greenwich Legal Associates LLC

Where This Case Stands Right Now

• The PHH Mortgage class action lawsuit was filed on March 17, 2026, in New York federal court. The case is in early litigation and has not yet been certified as a class action. No hearing dates have been set and no settlement has been proposed.
• PHH Mortgage rebranded to Onity Mortgage on March 23, 2026 — six days after this lawsuit was filed. Onity Group announced that PHH Mortgage Corporation has been renamed Onity Mortgage Corporation, with the rebrand consolidating Liberty Reverse Mortgage under the Onity Mortgage name.
• A separate PHH Mortgage lawsuit involving misleading default notices already reached a $1,500,000 settlement. That case covers a different group of borrowers — see the FAQ section below for details.

What Did PHH Mortgage Actually Do?

The Reverse Mortgage Targeting Claim

A reverse mortgage is a loan product that allows homeowners — typically seniors aged 62 and older — to borrow money against the equity in their home without making monthly payments. The loan only comes due when the borrower moves out, sells the home, or dies. The idea is to give older homeowners financial flexibility. But the lawsuit claims PHH Mortgage used this product in a very different way.

According to the lawsuit, PHH Mortgage used reverse mortgages to prey on the fears and insecurities of the elderly and infirm. Mattia claims PHH Mortgage locked these borrowers, and later their heirs, into loans with unexplained, undisclosed, and unsubstantiated fees, interest, and penalties.

Related article: Procter & Gamble Metamucil Lead Class Action, FFiber Supplements Contain Dangerous Levels of Lead

The lawsuit centers on what happened to one borrower — Lillian O’Keefe — and claims her experience reflects a pattern that impacted tens of thousands of others. Mattia claims O’Keefe, a financially stable homeowner, was induced by PHH Mortgage’s deceptive marketing to take out a reverse mortgage on her home while she was suffering from health issues.

What Happened After the Borrower Died

After O’Keefe’s death in June 2024, Mattia claims she promptly notified PHH Mortgage that the loan would be repaid in full upon the sale of O’Keefe’s house. However, Mattia alleges PHH Mortgage engaged in a course of unconscionable, misleading, and deceptive conduct that made the loss of her loved one exponentially more difficult and costly.

The specific allegations against PHH after O’Keefe’s death are serious. Mattia claims PHH Mortgage never provided her with the mortgage documents or payment history she requested, falsely told her they had initiated foreclosure proceedings, and hired an unsupervised, unvetted third-party vendor who illegally entered O’Keefe’s home and destroyed personal items.

These are not just financial complaints — they describe a company that the plaintiff claims used grief, confusion, and misinformation to push a family toward losing a home that was already being prepared for lawful sale.

The Laws the Lawsuit Claims Were Broken

Mattia is suing for violations of the Fair Debt Collection Practices Act, the Real Estate Settlement Procedures Act, New York General Business Law, New York Real Property Law, trespass, conversion, intentional infliction of emotional distress, and breach of contract.

In plain terms: the lawsuit accuses PHH Mortgage of illegal debt collection practices, failure to respond to proper requests for mortgage documents, unlawfully entering private property, and destroying personal belongings that did not belong to them.

Who Does This Lawsuit Seek to Cover?

The lawsuit seeks to represent all individuals who obtained reverse mortgages from PHH Mortgage or whose reverse mortgages were serviced by the company and who were harmed by its conduct.

You or a family member may be relevant to this lawsuit if any of the following apply:

• You may be relevant if you are a senior homeowner who took out a reverse mortgage through PHH Mortgage or Liberty Reverse Mortgage (PHH’s reverse mortgage brand, now rebranded as Onity Mortgage) and experienced hidden fees, undisclosed charges, or deceptive loan terms.
• You may be relevant if you are the heir, executor, or family member of someone who had a reverse mortgage serviced by PHH Mortgage and faced obstacles when trying to repay or close the loan after the borrower’s death.
• You may be relevant if PHH Mortgage denied you access to loan documents, payment histories, or account information you requested about a reverse mortgage.
• You may be relevant if PHH Mortgage falsely told you foreclosure proceedings had begun, imposed unexpected fees, or sent a third party to access a property in connection with a reverse mortgage.
• You may be relevant if your loved one’s home was accessed or personal property was damaged or destroyed by a vendor hired by PHH Mortgage.

This lawsuit is still in early litigation — no class has been formally certified yet. Potential class members should not expect a claim form or settlement portal at this stage.

PHH Mortgage’s Track Record With Regulators and Courts

This is not the first time PHH Mortgage has faced serious legal scrutiny. The company has a documented history of regulatory and legal challenges across multiple areas of mortgage servicing.

The Consumer Financial Protection Bureau initiated an administrative proceeding against PHH Corporation and its affiliates, alleging PHH harmed consumers through a mortgage insurance kickback scheme that started as early as 1995.

More recently, PHH Mortgage agreed to a separate $1,500,000 class action settlement over misleading default notices. The PHH Mortgage class action lawsuit claimed that the mortgage lender sent borrowers notices of default stating that their mortgage loan may be accelerated or foreclosed upon if they failed to cure the overdue amount by a certain date — letters that allegedly contained false statements intended to intimidate consumers into making immediate payments in violation of the Fair Debt Collection Practices Act.

Onity Group announced on March 23, 2026, that PHH Mortgage Corporation has been renamed Onity Mortgage Corporation — a rebrand that happened just days after this new reverse mortgage class action was filed in federal court.

What Can You Do Right Now?

Because this case has no settlement and no claim portal, there is no form to fill out today. But there are concrete steps affected borrowers and families can take immediately.

Step 1 — Document everything you have. If you or a deceased family member had a reverse mortgage with PHH Mortgage or Liberty Reverse Mortgage, gather all loan documents, payment histories, correspondence with PHH, and any notices of default or foreclosure you received. Save emails, letters, and phone records.

Step 2 — Note any fees you cannot explain. If your loan balance grew faster than expected, or if you were charged fees that were never disclosed when the loan was originated, write down what you know and keep copies of all statements.

Step 3 — Contact the plaintiff’s attorneys directly. The attorneys representing the class are Joseph M. Pastore III and Leanne M. Shofi of Pastore LLC, and Brandon Lacoff and Michele S. Carino of Greenwich Legal Associates LLC. If you believe your experience matches the allegations in this lawsuit, reaching out to class counsel is the appropriate next step.

Step 4 — Check the separate PHH default notice settlement. If you received a notice of default letter from PHH Mortgage between December 18, 2022, and December 15, 2025, you may qualify for automatic payment from the existing $1.5 million settlement — no claim form required. The final approval hearing for that case is June 9, 2026. Visit WilliamsPHHSettlement.com or call 844-329-3048 for details.

Step 5 — Monitor this case for updates. Case No. 1:26-cv-01584 can be tracked on the PACER federal court system. As the case develops — class certification, discovery, any settlement — this article will be updated.

Frequently Asked Questions

Is there a settlement I can claim from right now?

 No. The reverse mortgage class action filed on March 17, 2026 has no settlement yet. It is in early litigation. However, a separate PHH Mortgage settlement over misleading default notices is open for automatic payments. If your mortgage was serviced by PHH and you received a notice of default between December 18, 2022, and December 15, 2025, you may qualify automatically without filing a claim. Visit WilliamsPHHSettlement.com for details.

What is a reverse mortgage and how does the alleged harm work?

 A reverse mortgage lets homeowners — usually seniors 62 and older — borrow against home equity without monthly payments. The loan comes due when the borrower dies, sells the home, or moves out. The lawsuit claims PHH used aggressive marketing to push elderly people into these loans, then charged hidden fees and blocked heirs from accessing documents or completing an orderly repayment after the borrower died.

Does this lawsuit affect me even if my family member’s reverse mortgage was with Liberty Reverse Mortgage?

 Possibly. Liberty Reverse Mortgage was PHH Mortgage’s dedicated reverse mortgage brand and operated under the same corporate parent, Onity Group. The lawsuit names both PHH Mortgage Corp. and Onity Group Inc. as defendants. Both brands have now been consolidated under the Onity Mortgage name. If your family member’s loan was serviced by PHH or Liberty Reverse Mortgage and you experienced the conduct described in the complaint, your situation may be relevant to this case.

Do I need a lawyer to join this class action?

 If a class is eventually certified, class members are typically represented automatically by class counsel. You do not need to hire your own attorney to benefit. However, if you want to discuss your specific situation now — or if your losses were severe — consulting a consumer protection attorney on your own is reasonable. Most consumer protection attorneys offer free consultations.

PHH Mortgage recently changed its name. Does that affect this lawsuit?

 No. The lawsuit names both PHH Mortgage Corp. and Onity Group Inc. as defendants. A corporate name change does not erase legal liability for conduct that occurred before the rebrand. The case proceeds regardless of the company’s new name.

What laws does the lawsuit claim were broken? 

The complaint alleges violations of the Fair Debt Collection Practices Act (FDCPA) — a federal law that bans deceptive debt collection tactics — and the Real Estate Settlement Procedures Act (RESPA), which requires mortgage servicers to respond to borrower requests for documents and information. The lawsuit also alleges violations of New York General Business Law, New York Real Property Law, and common law claims including trespass, conversion, and intentional infliction of emotional distress.

What should I do if a vendor entered my property without permission in connection with a PHH reverse mortgage?

 Document it immediately. Photograph any damage, note the date and what happened, and preserve any correspondence from PHH about property inspections. This type of conduct — unauthorized property entry — is one of the specific allegations in the complaint. Report it to your state attorney general’s office and contact the plaintiff’s attorneys in this case.

When might this case result in a settlement or payment?

 Class action lawsuits in federal court typically take one to four years from filing to resolution. This case was filed in March 2026 and is in very early stages. Class certification must be granted before any settlement can cover a broader group. There is no timeline to predict at this point — but you can track the case at PACER using Case No. 1:26-cv-01584.

Sources & References

1. Justia Docket — Mattia v. PHH Mortgage Corporation, et al., Case No. 1:26-cv-01584
2. CFPB Enforcement Action — PHH Corporation
3. PHH Default Notices Settlement Website — WilliamsPHHSettlement.com

Last Updated: April 9, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. No court has ruled on the claims described in this lawsuit. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.