- July 31, 2013
Deadline for all OPT OUTS to be postmarked and mailed to the Settlement Administrator.
- July 31, 2013
- Deadline for all OBJECTIONS, MOTIONS AND NOTICES OF APPEARANCE to be postmarked and mailed or hand-delivered to the Court, Class Counsel and Counsel for the Defendants
- August 26, 2013 at 10:00 AM
Court Approval Hearing
UPDATE: On September 19, 2013 the court approved the settlement and dismissed the case. The decision became final on October 24, 2013, as no appeals were filed. Checks will be mailed out by December 15, 2013.
If you owned California residential property and obtained a PayOption Adjustable Rate Mortgage Loan (POA Loan) from Mortgage Investors Group or another mortgage lender between January 24, 2004 and June 13, 2013, which was then sold to Countrywide Home Loans, Inc. (CHL) so that CHL became your loan servicer, your rights may be affected by a class action settlement.
A proposed Settlement has been reached in a class action lawsuit alleging that Mortgage Investors Group, a general partnership, Mortgage Investors Group, Inc. (collectively “MIG”), and Countrywide Home Loans, Inc. (“CHL” and, together with MIG, “Defendants”), violated California’s Unfair Competition Law (“UCL”) by failing to disclose certain information in the sale of POA Loans – loans with terms providing for different monthly payment options in the early years of the loan and a discounted initial interest rate.
Defendants deny that they acted unlawfully, deny that they violated the UCL or any other law or legal requirement, and assert numerous defenses against Plaintiff’s claims.
The Court never resolved the claims and defenses of the Plaintiff or Defendants in the action or whether Defendants did anything wrong.
The California POA loans with scope of the proposed Settlement were made by MIG and other lenders between January 24, 2004 and June 12, 2013 (the “Class Period”), were secured by residential property located in California that, according to loan application records, was used as the borrower’s principal residence at the start of the loan, and were sold to CHL after the start of the loan.
For more details on the proposed Settlement, the benefits available, the persons who are eligible for the benefits, each Class Member’s rights and options, you may review the Frequently Asked Questions, the Class Notice, and the Settlement Agreement.
On August 26, 2013 at 10:00 AM, the U.S. District Court for the Northern District of California (San Jose Division) will hold a hearing to decide whether to give final approval to the Settlement. For more information about that hearing, please review the Class Notice. The settlement benefits will be distributed to eligible Class Members only if the Court grants final approval and after any appeals are resolved. If an appeal is lodged, resolution can take time. Please be patient.
This website will be updated periodically with new developments in the Settlement.