The PHH Mortgage private mortgage insurance class action settlement offers $875 per qualifying loan to borrowers who were harmed by PHH Corporation’s alleged kickback scheme. Between 2007 and 2009, PHH required borrowers to purchase private mortgage insurance that was then reinsured through an affiliate company called Atrium—a practice that federal regulators determined violated federal anti-kickback laws.
This settlement, which received final court approval on December 19, 2025, provides compensation to thousands of affected borrowers, with claims remaining open until August 11, 2026. We’ll also explain the underlying allegations against PHH, how this settlement compares to related enforcement actions, and what the resolution process looks like for approved claimants.
Table of Contents
- What Was PHH Corporation Accused of Doing?
- Who Is Eligible for the Settlement?
- How Much Will You Actually Receive?
- How Do You File a Claim?
- What Warnings Should You Know About?
- How Does This Fit Into the Broader PMI Settlement Landscape?
- What Happens After You File Your Claim?
What Was PHH Corporation Accused of Doing?
PHH Corporation’s alleged violation centered on a practice known as a “kickback scheme” in mortgage lending. Between 2007 and 2009, when PHH originated or acquired mortgages, the company required many borrowers to purchase private mortgage insurance (PMI)—a common practice when buyers don’t put down 20% or more. However, PHH then had that insurance reinsured through Atrium, an affiliate company in which PHH held ownership interests.
The insurance payments effectively flowed money back to PHH through Atrium, creating what federal regulators considered an illegal kickback arrangement. Federal law prohibits lenders from steering borrowers toward products or services in exchange for financial benefits, particularly when those benefits come back to the lender. The Consumer Financial Protection Bureau (CFPB) determined that PHH’s arrangement violated these protections. Beyond the private civil settlement, PHH faced multiple government enforcement actions: the Department of Justice required the company to pay over $74 million to resolve False Claims Act allegations related to its mortgage practices, and state attorneys general secured a $45 million settlement with PHH over mortgage conduct issues.
Who Is Eligible for the Settlement?
To qualify for the PHH Mortgage PMI settlement, you must meet specific criteria related to when your loan was issued and your relationship with PHH. The settlement covers mortgages that were originated or acquired by PHH Corporation between January 1, 2007, and December 31, 2009. This three-year window captures the period when the alleged kickback scheme was operating.
You also must have been required to purchase private mortgage insurance as a condition of your loan during that period. However, if you refinanced your loan outside the 2007-2009 window, or if your mortgage was not directly originated or acquired by PHH Corporation itself, you may not qualify—the settlement is specifically tied to loans PHH handled during those specific years. The official settlement website at phhmisettlement.com provides tools to verify whether your loan qualifies based on your loan number or other identifying information.
How Much Will You Actually Receive?
The settlement provides a fixed $875 payment per qualifying loan, with no reduction based on the number of claims filed. This is an important protection: unlike some class action settlements where the total pot is divided among all claimants, potentially reducing individual payouts as more people file, the PHH settlement guarantees each eligible borrower the full $875 amount. If you had multiple loans that qualify under the settlement terms, you could potentially receive $875 for each one, though you’ll need to provide separate proof for each loan.
The $875 represents compensation for the improper PMI charges and the financial harm caused by being forced into a kickback arrangement. To put this in context, PMI typically costs between 0.5% and 1% of the home loan amount annually, so a $200,000 mortgage could generate $1,000 to $2,000 in annual PMI costs. Over a multi-year period, the alleged overcharges could easily exceed the settlement amount, meaning this settlement compensates for a portion of the overall harm.
How Do You File a Claim?
Filing a claim is straightforward, but you must act before the August 11, 2026 deadline. The official settlement website, phhmisettlement.com, hosts a claims portal where you can submit your claim online. You’ll need to provide basic identifying information about your loan, including your loan number, property address, or other details that verify you held a qualifying mortgage during the relevant period.
When you file, you’ll be asked to provide documentation proving that you owned a mortgage meeting the settlement criteria. This might include a loan statement, closing disclosure, or other documents showing your loan was originated or acquired by PHH between 2007 and 2009. Keep in mind that while the $875 is guaranteed if you qualify, you do need to submit the claim before August 11, 2026—after that date, the claims window closes and you’ll forfeit the payment. If you’ve moved or lost your original loan documents, the settlement website offers guidance on how to locate alternative proof or request documents from PHH.
What Warnings Should You Know About?
The primary warning is the August 11, 2026 deadline. This is a hard deadline, not a guideline—claims submitted after this date will not be accepted, regardless of whether you eventually find proof of eligibility. If you believe you may qualify, it’s worth filing early rather than waiting until the last moment, especially given the current date of March 25, 2026, leaving just over four months to submit your claim.
Another important consideration: the settlement applies only to loans where you were required to purchase PMI. If your loan required PMI but you paid it off and refinanced before 2007, or if you obtained your mortgage after 2009, you won’t qualify. Additionally, if your original lender was not PHH Corporation itself, but rather another company that later sold the loan to PHH, you need to verify the timing carefully—the settlement requires that PHH originated or acquired the loan, but the critical date is when PHH took control, not when the loan was first issued. This distinction matters, so carefully review the settlement website’s eligibility criteria before assuming you don’t qualify.
How Does This Fit Into the Broader PMI Settlement Landscape?
The PHH settlement is part of a series of enforcement actions targeting mortgage industry misconduct. The multi-state $45 million settlement with state attorneys general addressed PHH’s broader mortgage practices beyond just the PMI kickback issue. The DOJ’s $74 million False Claims Act settlement involved allegations that PHH improperly serviced Federal Housing Administration (FHA) mortgages and failed to comply with FHA requirements—a separate but overlapping area of mortgage misconduct.
These parallel settlements demonstrate that federal and state regulators have increasingly scrutinized mortgage industry practices, particularly those affecting borrowers with lower down payments who rely on PMI. If you had loans with other servicers during the same 2007-2009 period, you may have received notices about separate PMI-related settlements, as regulatory attention to kickback schemes has been consistent across the industry. The HUD Office of Inspector General specifically acknowledged PHH’s failure to comply with Federal Housing Administration requirements, suggesting that the issues went beyond PMI into broader loan servicing and compliance.
What Happens After You File Your Claim?
Once you submit a claim through phhmisettlement.com, the settlement administrator will process your submission and verify your eligibility. This typically takes several weeks to a few months, depending on whether you provided all necessary documentation and how straightforward your loan information is to verify. The settlement reached final approval on December 19, 2025, meaning the courts have already certified the settlement and authorized payments to begin.
Approved claimants should expect to receive their $875 payment by check or direct deposit, depending on how the settlement administrator structures distributions. The website will likely provide status updates as payments are processed and distributed. Because this settlement has already received final court approval and the administrative machinery is in place, payments should flow relatively quickly once claims are reviewed and approved—this isn’t a settlement waiting for additional court steps.