Realogy Holdings Corp., a real estate franchise group, and PHH Corp., a mortgage solutions provider, might have won the most recent court round, but that doesn’t mean their battle is over yet. A class-action lawsuit filed in California federal court alleging that PHH and Realogy violated the Real Estate Settlement Procedures Act (RESPA) in failing to adequately disclose their joint venture and affiliated businesses to consumers may be on its last attempt to see the case through — but the plaintiffs are not giving up easily.
- Attorneys for the plaintiffs in Strader, et al., v. PHH Corp., et al., have filed a second amended complaint in an attempt to clear a statute of limitations hurdle that threatens the case’s survival.
- At the center of the lawsuit, according to the new complaint, is PHH Home Loans, a joint venture that PHH Corp. and Realogy entered into in January 2005.
- The consumer plaintiffs in the case claim they were not made aware of the nature of the joint venture.
- During their mortgage transactions, the Straders and Hall were allegedly “not notified of any of the contractual obligations between and among defendants by which they had agreed to exchange referrals, preferences, exclusivities and other things of value in relation to the settlement services."
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