Phillips v Caliber Home Loans, Inc.

A Court authorized the Notice because you have a right to know about the Proposed Settlement of this class action lawsuit and about all of your options, before the Court decides whether to give Final Approval to the Settlement. This website explains the lawsuit, the Settlement and your legal rights.

Judge Wilhelmina M. Wright, of the U.S. District Court for the District of Minnesota, is overseeing this case. The case is known as Phillips, et al. v. Caliber Home Loans, Inc., Case No. 0:19-cv-02711. The people who sued are called the “Plaintiffs.” The Defendant is Caliber Home Loans, Inc.

The lawsuit claims that Caliber charged borrowers fees to make mortgage payments online, or over the phone, including through the use of the telephonic automated “IVR” (interactive voice response) system (“Pay-to-Pay fees”).  The Action asserts that Caliber’s practice of charging such fees, among other things, violated the federal Fair Debt Collection Practices Act, 16 U.S.C. § 1692f(1), various state debt collection laws, and breached the terms of the borrowers’ loan agreements.  Caliber denies the allegations asserted in the Actions. The Court has not decided who is right.

The Amended Complaint in this Action is posted in the Documents section of this website and contains all of the allegations and claims asserted against Caliber. 

In a class action, one or more people, called Class Representatives (in this one, mortgage borrowers whose mortgages were serviced by Caliber and who paid Pay-to-Pay fees), sued on behalf of people who have similar claims.

All of the people who have claims similar to the Class Representative are members of the Settlement Class, except for those who exclude themselves from the class.

The Court has determined that every person who fits the following description is a Class Member:

All persons who (1) were borrowers on residential mortgage loans on properties in the United States whose loans were serviced by Caliber, and (2) paid a fee to Caliber for making a loan payment by telephone, IVR, or the internet, from January 1, 2013 to January 21, 2020.

Caliber’s records reflect that you may be a Class Member.

Both sides agreed to the Settlement. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial, and Settlement Class Members receive the benefits described on this website. The Class Representatives and their attorneys think the Settlement is best for everyone who is affected.

The complete terms of the proposed Settlement are set forth in a formal Settlement Agreement (the “Agreement”) which is on file with the Court, and which is also available in the Documents section of this website. This website is only a summary of the Settlement, and in case of any conflict between this website and the Agreement, the terms of the Agreement will control.

In the proposed Settlement, Caliber has agreed to create a $5,000,000.00 Common Fund. All Administrative Costs, any Court-awarded attorneys’ fees and expenses to Class Counsel, and any Service Awards to the Class Representatives will be paid out of the Gross Settlement Fund first. The remaining balance of the Settlement Fund (the “Net Settlement Fund”) will be distributed among the Class Representative and all Class Members who are not excluded from the class, as set forth below (the “Settlement Class Members”). If the Court awards all Administrative Costs, attorneys’ fees and expenses, and Service Awards requested by the Parties, the Net Settlement Fund will be approximately $3,040,299.

Also, as part of the Settlement, Caliber has agreed to stop charging fees for payments made online or by telephone, including through the use of the telephonic automated “IVR” (interactive voice response) system for three years.

Allocations of the Net Settlement Fund will be calculated on a borrower-by-borrower basis, such that each Class Member will receive an equal pro rata share of the monetary benefits. Settlement Class Members who receive a Settlement Payment are solely responsible for distributing or allocating their payment between or among all co-account holders.   

Attorneys’ Fees and Expenses, and Service Award. Class Counsel will ask the Court to award attorneys’ fees in an amount not to exceed one third (33.33%) of the Settlement Fund, or $1,666,500, plus litigation costs and expenses.  Class Counsel will also request Court approval of Service Awards to the Class Representatives in the amount of $5,000 each.  Class Counsel will file that request, along with all supporting documents, at least 21 days prior to the deadline to exclude from or object to the Settlement.  The Fee and Service Award Application and all supporting papers will be available for your review in the Documents section of this website. The Court will determine the appropriate amount of the attorneys’ fees and awards to be paid. The Settlement is not conditioned upon approval of any of the attorneys’ fees, costs, or Service Award amounts.

You are not required to make any payments to Class Counsel in this action. 

As long as you do not exclude yourself from the Settlement, you will automatically receive cash benefits from the Settlement, and you do not need to take further action.  You are encouraged to visit the Payment Options section of this website to select the format in which would like to receive your cash benefits. You may select between receiving your Settlement Payment on a MasterCard gift card, in the form of a paper check, or via various digital payment options, such as PayPal or Venmo. If no payment method is selected by October 1, 2021, you will receive your payment in the form of a MasterCard gift card, which can be used without a cost to you at all domestic merchants that accept MasterCard. Upon receipt of the MasterCard, you will have the option of visiting this website and electing that the balance thereon be paid out to you via paper check or an alternate digital payment option. If you wish to receive your Settlement Payment in another format, including via check, you must visit the Payment Options section of this website by October 1, 2021 to select your preferred option.

The MasterCard gift cards will expire in two years, but may be extended upon request. If you elect to receive your funds via checks, checks will be valid for 90 days. Settlement Class Members may request that the Settlement Administrator reissue a check for one additional 90-day period for good cause shown. If there is any amount in the Settlement Fund that remains following the distribution of checks to Settlement Class Members as a result of checks being returned undeliverable or which are not cashed within 90 days, those funds will be distributed on a pro rata basis to Settlement Class Members who cashed their checks. Within 180 days after the Settlement Administrator mails the first Settlement Class Member Payments, the Settlement Administrator will decide whether Residual Funds should be distributed to the Settlement Class Members through a secondary distribution. If the amount of the remaining funds is so minimal that a secondary distribution would be impracticable or infeasible, then, subject to the Court’s approval, the remaining funds shall be distributed to Habitat for Humanity, a 501(c)(3) charitable organization that works with nonprofits around the country on housing issues.

As described below, the Court will hold a Final Approval Hearing on December 16, 2021, at 9:00 a.m. CST to decide whether to grant Final Approval of the Settlement.  The Court must finally approve the Settlement before any relief will be distributed, and it will only do so after finding that the Settlement is fair, reasonable, and adequate.  In addition, any Final Approval Order the Court may enter may be subject to appeal.  If there are any such appeals, resolving them takes time.  Payments to Settlement Class Members will only be made after the time for any appeals expires. Please be patient.

The Court has appointed James L. Kauffman of Bailey & Glasser LLP, Randy Pulliam of Carney Bates & Pulliam, PLLC, and Hassan A. Zavareei and Kristen G. Simplicio of Tycko & Zavareei LLP to represent you and other Class Members in this Action and for purposes of this Settlement, and for no other purpose.  These attorneys are called “Class Counsel.”  You will not be charged for these lawyers.  If you want to be represented by your own lawyer in this case, you may hire one at your own expense.

You may contact Class Counsel at:

James Kauffman
Bailey & Glasser LLP
1055 Thomas Jefferson Street NW
Suite 540
Washington, DC 20007

Randy Pulliam
Carney Bates & Pulliam, PLLC
519 W 7th Street
Little Rock, AR 72201

Hassan Zavareei
Kristen G. Simplicio
Tycko & Zavareei LLP
1828 L Street, NW – Suite 1000
Washington, DC 20036

Class Counsel will ask the Court to award attorneys’ fees in an amount not to exceed one third (33.33%) of the Settlement Fund, or $1,666,500, plus litigation costs and expenses.  Class Counsel will also request Court approval of Service Awards to the Class Representatives in the amount of $5,000 each.  Class Counsel will file that request, along with all supporting documents, at least 21 days prior to the deadline to  exclude from or object to the Settlement.  The Fee and Service Award Application and all supporting papers will be available for your review on this website. The Court will determine the appropriate amount of the attorneys’ fees and awards to be paid. The Settlement is not conditioned upon approval of any of the attorneys’ fees, costs, or Service Award amounts.

No. You will not receive a payment if you exclude yourself from the Settlement.

If you are a Settlement Class Member and have not requested to be excluded from the Settlement Class, you can object to any part of the Settlement, the Settlement as a whole, Class Counsel’s requests for fees and expenses, and/or Class Counsel’s request for Service Awards for the Class Representatives. 

You can’t ask the Court to order a different settlement; the Court can only approve or reject the settlement. If the Court denies approval, no Settlement Payments will be sent out and the lawsuit will continue. If that is what you want to happen, you must object.

The Court will accept objections that substantially comply with the objection requirements set forth below, and the submission of the following may be excused upon a showing of good cause. In particular, Your objection must include the following:

• Your name, address, email address (if any), and phone number;
• The case caption, Phillips v. Caliber Home Loans, Inc., Case No. 0:19-cv-02711 (D. Minn.);
• The specific legal and factual bases for your objection;
• A list of all cases in which you have objected to a class action settlement, including case name, court, and docket number;
• If you are represented by counsel, a list of all cases in which your counsel has represented an objector in objecting to a class action settlement, including the case name, court, and docket number;
• A statement indicating whether you and/or your counsel intend to appear at the Final Approval Hearing; 
• A list of witnesses, if any, that you intend to call;
• Whether the objection relates only to you, to a subset of the Settlement Class, or to the entire Settlement Class; and
• Your signature.

Any Settlement Class Member who has not submitted a timely request for exclusion may appear at the Final Approval Hearing either in person or through an attorney. However, if the Settlement Class Member intends to appear through counsel, the Settlement Class Member must have submitted a written objection pursuant to this section. Any lawyer who intends to appear at the Final Approval Hearing also must enter a written Notice of Appearance of Counsel with the Clerk of the Court no later than the Response Deadline. Any Settlement Class Member who intends to request the Court to allow him or her to call witnesses at the Final Approval Hearing must make such a request in a written brief, which contains a list of such witnesses and a summary of their requested testimony. 

Your objection must be postmarked no later than November 1, 2021 and must be mailed to the Court c/o the Clerk of the Court for the United States District Court for District of Minnesota, Warren E. Burger Federal Building and U.S. Courthouse, 316 North Robert Street, Suite 100, St. Paul, MN 55101 or filed in person on or before November 1, 2021 at any location of the United States District Court for the District of Minnesota.

If the Settlement receives final approval from the Court, the Settlement will be legally binding on all Settlement Class Members, including Settlement Class Members who object. If you, or someone acting on your behalf, are currently litigating claims against Caliber or other released parties that are the same as or similar to those addressed here, you will be barred from pursuing the claims released by the Settlement unless you validly opt out, as described above. Under the terms of the release, you will not be able to sue for any claim relating to Pay-to-Pay Fees for mortgage payments made over the internet, and or by phone, including those made using the  telephonic automated “IVR” (interactive voice response) system, between January 1, 2013 and January 21, 2020.

The full terms of the release, which will bind all Settlement Class Members as to certain claims against Caliber and certain affiliates and related entities (“Released Parties”), are set forth in the Settlement Agreement, which is on file with the Court, and which is available on this website. Unless you exclude yourself, you will be a Settlement Class Member, and that means that any claims you have regarding fees Pay-to-Pay fees you paid to Caliber will be fully and completely resolved, and that you cannot sue, continue to sue, or be part of any other lawsuit against Caliber about Caliber’s collection of Pay-to-Pay fees.  It also means that the Court’s Orders approving the Settlement and the judgment in this case will apply to you and legally bind you.

If you want to keep the right to sue or continue to sue Caliber, on your own, about Caliber’s collection of Pay-to-Pay fees, you must exclude yourself from the Settlement in this case.  If you exclude yourself, as set forth above, you will not receive any of the benefits of the Settlement, as described above.

The Court will hold a “Final Approval Hearing” on December 16, 2021, at 9:00 a.m. CST to hear any objections and to consider whether to give final approval to the Settlement.  Further information about how to attend that hearing, including whether the hearing will be held in person at the courthouse or online via Zoom videoconferencing, will be available on this website. The hearing may be moved to a different date or time without additional notice, so it is a good idea to check the website for updates. 

At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will hear objections at the hearing only from those who timely object to the Settlement, as described below.  You may participate in the Final Approval  Hearing with or without an attorney, but if you choose to be represented by an attorney, you must do so at your own expense. 

YOU DO NOT HAVE TO APPEAR AT THE HEARING TO RECEIVE THE BENEFITS OF THE SETTLEMENT.

You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must send a letter saying that you intend to appear and wish to be heard. Your Notice of Intention to Appear must include the following:

• Your name, address and telephone number;
• A statement that this is your “Notice of Intention to Appear” at the Final Approval Hearing for the Settlement in Phillips, et al. v. Caliber Home Loans, Inc., Case No. 0:19-cv-02711 (D. Minn.);
• The reasons you want to be heard;
• Copies of any papers, exhibits, or other evidence or information that is to be presented to the Court at the Final Approval Hearing; and
• Your signature.

You must submit your Notice of Intention to Appear no later than November 1, 2021, to:

James Kauffman
Bailey & Glasser LLP
1055 Thomas Jefferson Street NW
Suite 540
Washington, DC 20007

Randy Pulliam
Carney Bates & Pulliam, PLLC
519 W 7th Street
Little Rock, AR 72201

Hassan Zavareei
Kristen G. Simplicio
Tycko & Zavareei LLP
1828 L Street, NW – Suite 1000
Washington, DC 20036

David T. Biderman
Perkins Coie LLP
1888 Century Park East
Suite 1700
Los Angeles, CA 90067

Phillips v Caliber Home Loans, Inc.
c/o Settlement Administrator
P.O. Box 225391
New York, NY 10150-5391

More Information Is Available

This Notice is only a summary of the Settlement and the Agreement. More details can be found in the Settlement Agreement. You can obtain a copy of the Settlement Agreement, and additional court documents related to the Settlement, on this website. 

If you have other questions regarding the Settlement, you may also contact Class Counsel at:

James Kauffman, Bailey & Glasser LLP, 1055 Thomas Jefferson Street NW, Suite 540, Washington, DC 20007, (202) 463-2105, [email protected]

Randy Pulliam, Carney Bates & Pulliam, PLLC, 519 W 7th Street, Little Rock, AR 72201, (501) 312-8500, [email protected]

Hassan Zavareei and Kristen Simplicio, Tycko & Zavareei LLP, 1828 L Street, NW – Suite 1000, Washington, DC 20036, (202) 973-0900, [email protected]; [email protected] 

You may also contact the Settlement Administrator at:

Phillips v Caliber Home Loans, Inc.
c/o Settlement Administrator
P.O. Box 225391
New York, NY 10150-5391

You may also review the Court’s file during regular court hours at:

Clerk of the Court for the United States District Court for District of Minnesota
Warren E. Burger Federal Building and U.S. Courthouse
316 North Robert Street, Suite 100
St. Paul, MN 55101 

PLEASE DO NOT TELEPHONE THE COURT, THE JUDGE, OR THE CLERK OF THE COURT.