July 25, 2022

Flagstar's petition for rehearing has been denied by the 9th Circuit. But Flagstar indicates that it will seek review from the US Supreme Court. This will further delay the final disposition of the case and distribution of the Class judgment funds to Class members. Assuming the US Supreme Court denies review, Class Counsel hopes to complete the case before the end of this year.

May 17, 2022

The Ninth Circuit Court of Appeals denied most of Flagstar's appeal on May 17, 2022. The Memorandum of disposition is posted to the Court Documents section of this website.

However, Flagstar has announced that it plans to ask for a rehearing, which will further delay the final resolution of this case, including the disbursement of the judgment to the Class.

Class Counsel now estimates that the final disposition of the court of appeals will occur approximately July 2022, that they will file their motion for attorney fees approximately August 2022 (to be posted in the Court Document section of this website when it is filed), and that the final distribution of the Class judgment should occur approximately October 2022. These estimates could change based on unexpected activity by the appellate courts.

Also please note that, per the Memorandum, the Court of Appeals changed the dates of the class period to make the Class slightly smaller. Whereas the class period reached back to April 18, 2014, previously, it now reaches back to August 22, 2014. This results in a reduction of the Class judgment from $9,262,769.24 to $9,180,580.15 (less than 1%).

December 18, 2020

The Court's order of December 10, 2020 has been amended by stipulation so that the judgment shall be entered on or about March 1, 2021. The stipulated order is posted to the Court Documents section of this website.

As amended, the money judgment in favor of the Class against Flagstar shall cover the period through December 31, 2020 and interest-on-escrow shall accrue to sub-class members January 1, 2021 and be payable directly to sub-class members effective January 1, 2022, or when a sub-class member's relationship with Flagstar terminates, whichever is sooner. It remains the case that, if Flagstar appeals the judgment, it could take years for this case to resolve. In the event of a proposed settlement, class members will be sent a notice, Plaintiffs will post a motion for attorney fees to this website within 35 days of entry of the judgment.

December 10, 2020

The Court granted summary judgment in favor of the Class on December 10, 2020. The ruling is posted to the Court Document section of this website. The order provides for a money judgment in favor of the Class against Flagstar covering the period through December 31, 2019, and requires Flagstar to begin paying interest-on-escrow to all sub-class members effective January 1, 2020. If Flagstar appeals the judgment, it could take years for this case to resolve. In the event of a proposed settlement, class members will be sent a notice.