Case Overview

Case: PHH Mortgage / Onity Group Reverse Mortgage Class Action

Filed: 2026

Defendants: PHH Mortgage, Onity Group

Allegations: Fraudulent and predatory reverse mortgage practices

Status: Newly filed; no settlement reached

Who May Be Affected: Borrowers who obtained or were serviced under a PHH Mortgage reverse mortgage

PHH Mortgage Accused of Predatory Reverse Mortgage Practices in New Class Action

A newly filed class action lawsuit is taking aim at PHH Mortgage and its parent company, Onity Group, alleging that the two companies engaged in fraudulent and predatory practices in connection with the origination and servicing of reverse mortgages — products that are often marketed to older homeowners seeking financial stability in retirement.

According to recent class action reporting, the lawsuit alleges that PHH Mortgage and Onity Group exploited vulnerable borrowers through deceptive conduct tied to their reverse mortgage operations. The complaint represents what could be a significant legal challenge for one of the country's largest mortgage servicers.

What Is a Reverse Mortgage — and Why Does It Matter Here?

Reverse mortgages are specialized home loans available to homeowners typically 62 and older that allow borrowers to convert a portion of their home equity into cash. Unlike traditional mortgages, no monthly payments are required as long as the borrower lives in the home, but the loan balance grows over time and becomes due when the homeowner moves, sells the property, or passes away.

Because reverse mortgages are often marketed to seniors on fixed incomes, consumer advocates have long scrutinized the industry for practices that may not be in borrowers' best interests. The new lawsuit against PHH Mortgage and Onity Group appears to fit squarely into that ongoing concern.

What the Lawsuit Alleges

The class action complaint accuses PHH Mortgage and Onity Group of engaging in fraudulent and predatory conduct in both the origination and servicing of reverse mortgages, according to the reporting. While full details of the complaint are still emerging, the lawsuit's framing — targeting both the front-end origination process and the ongoing servicing relationship — suggests the alleged misconduct may have affected borrowers at multiple stages of their loan experience.

The lawsuit alleges that the companies' practices were deceptive in nature, potentially leaving borrowers worse off than they were led to believe when entering into their loan agreements.

PHH Mortgage, which operates under the Onity Group corporate umbrella, is one of the largest mortgage servicers in the United States, managing hundreds of thousands of loans nationwide.

Who May Be Affected

Based on the allegations described in the complaint, homeowners who:

• Obtained a reverse mortgage originated by PHH Mortgage, or
• Had a reverse mortgage serviced by PHH Mortgage or Onity Group

may fall within the proposed class. Borrowers who are elderly, were on fixed incomes at the time of origination, or who experienced unexpected fees, loan accelerations, or other adverse outcomes connected to their PHH reverse mortgage may want to follow developments in this case closely.

Eligibility for any future settlement or judgment will ultimately be determined by the court and the terms of any class certification order.

The Broader Context: Reverse Mortgage Scrutiny

PHH Mortgage's legal battle arrives amid heightened national scrutiny of the reverse mortgage industry. The Consumer Financial Protection Bureau (CFPB) and the Department of Housing and Urban Development (HUD) have both issued guidance and enforcement actions in recent years addressing problematic reverse mortgage servicing practices, including improper loan calls, inadequate borrower communication, and failure to offer required loss mitigation options.

Research suggests that older homeowners — particularly those who are widowed or lack access to independent legal counsel — may be especially vulnerable to the kinds of alleged practices described in the complaint.

Key Takeaways

• A new class action lawsuit alleges PHH Mortgage and Onity Group engaged in fraudulent and predatory practices involving reverse mortgages
• The complaint targets both the origination and servicing of those loans, suggesting potentially broad impact across the borrower lifecycle
• Reverse mortgage borrowers — typically seniors — are often considered a vulnerable consumer group, which may influence how courts and regulators respond to these allegations
• No settlement has been reached; this lawsuit is in its early stages
• Borrowers who believe they were harmed by PHH Mortgage's reverse mortgage practices may wish to consult with a qualified attorney to understand their options

This article is based on publicly available reporting and court filings. InjuryClaims.com does not provide legal advice. Nothing in this article should be construed as legal counsel or a determination of eligibility for any legal claim.

Have you had an experience with a PHH Mortgage reverse mortgage? Share your story in the comments below.