PHH Mortgage Must Face Inspection Cost Markup Suit

Law360 (June 29, 2021, 10:56 PM EDT) -- A Florida federal judge ruled Monday that PHH Mortgage Corp. cannot escape a putative class action accusing it of improperly charging mortgage holders markups on its costs for third-party property inspections for defaulted loans, trimming a claim of constructive fraud but allowing all other claims to advance.

U.S. District Judge Paul G. Byron allowed plaintiff Kirk Culver's claims of breach of contract and violations to the Fair Debt Collection Practices Act, as well as allegations of violations of the Florida Consumer Collection Practices Act, survive the mortgage lender's bid for dismissal.

PHH had argued, among other things, that it does not...

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