Notice of Class Certification Has Been Issued in Lawsuit Accusing Flagstar Bank of Failing to Comply With a California Law Requiring Payment of Interest-On-Escrow Accounts That The Bank Maintains For Mortgage Loans On Residential Properties, Announces The Law Office of Peter Fredman PC And Hagens Berman Sobol Shapiro LLP
SAN FRANCISCO, Jan. 21, 2020 /PRNewswire/ -- Notice of class certification issued in a federal lawsuit accusing Flagstar Bank of failing to comply with a California law requiring the payment of 2% interest on escrow accounts that the bank maintains for mortgage loans on 1-4 unit residential properties. The notice gives Class members until March 2, 2020 to exclude themselves from the Class, which will be represented in a trial scheduled for a date to be determined in the Spring of 2020 by Thomas Loeser of Hagens Berman Sobol and Shapiro LLP and Peter Fredman of the Law Office of Peter Fredman PC. The trial will be conducted in the Northern District of California before Judge William Alsup. Any Class members who do not exercise their rights to exclude themselves from the Class will be bound by the outcome of the trial.
On November 20, 2019, Judge Alsup granted Class certification of the case, entitled William Kivett v. Flagstar Bank, FSB, Northern District of California Case No. No. C 18-05131 WHA, in a 13 page order finding that “this is a classic and textbook issue of the class action device … These borrowers now join together to vindicate their right to interest under the law. … It is hard to imagine a case more worthy of class treatment.” On January 7, 2020, Judge Alsup issued an order finalizing the form and manner of the required notice to the Class. On January 16, 2020, Class notice issued pursuant to that order via mail and email to all persons who appeared to be Class members based on Flagstar Bank’s records.
The Notice of the Class Action, further details about the case, and certain court documents can be found at www.Flagstar-Interest-On-Escrow-Class-Action.com. The short form of the Notice is as follows:
NOTICE OF CLASS ACTION
William Kivett and Bernard and Lisa Bravo v. Flagstar Bank, FSB
Case No. 3:18-cv-05131-WHA
A federal court authorized this notice. This is not a solicitation from a lawyer.
If you had a mortgage loan serviced by Flagstar Bank on 1-4 unit residential properties in California, a class action lawsuit may affect your rights.
A lawsuit is pending in the United States District Court for the Northern District of California (the “Court”) against Flagstar Bank, FSB (“Flagstar”). Plaintiffs in the lawsuit claim that Flagstar violated California law by not paying interest on mortgage escrow accounts in California. The Court has not decided whether the Plaintiffs or Defendant are correct. Flagstar’s records indicate you are a member of the certified class.
WHO IS IN THE CLASS
The Court certified the lawsuit as a class action and defined the class as follows:
All persons who at any time on or after April 18, 2014 through September 30, 2019 had mortgage loans serviced by Flagstar Bank, FSB (“Flagstar”) on 1–4 unit residential properties in California and paid Flagstar money in advance to hold in escrow for the payment of taxes and assessments on the property, for insurance, or for other purposes relating to the property, but did not receive interest on the amounts held by Flagstar in their escrow accounts (excluding, however, any such persons (a) whose mortgage loans originated on or before July 21, 2010 or (b) who would be owed less than $1 in interest-on-escrow as of September 30, 2019 if plaintiffs’ allegations are proven) (the “Class”).
YOUR RIGHTS AND OPTIONS
DO NOTHING: By doing nothing, you keep the possibility of getting money or benefits that may come from a trial or a settlement. But you give up any rights to sue Flagstar separately about the same legal claim in this lawsuit.
ASK TO BE EXCLUDED: If you ask to be excluded and money or benefits are later awarded in this class action lawsuit, you will not share in those. But you keep any rights to sue Flagstar separately about the claim in this lawsuit. The deadline to request exclusion is March 2, 2020. Please go to www.Flagstar-Interest-On-Escrow-Class-Action.com to learn more.
Plaintiffs will have to prove their claims against Flagstar at a trial. The trial is currently set to start on February 24, 2020. During the trial, a Judge will hear all of the evidence to help the Judge reach a decision about whether the Plaintiffs or Defendant are right about the claims in the lawsuit. There is no guarantee that the Plaintiffs will win, or that they will get any money for the Class.
WANT MORE INFORMATION?
If you have any questions or want to review documents that have been filed in this case, including the detailed Notice that describes how to request exclusion, you may visit www.Flagstar-Interest-On-Escrow-Class-Action.com. Please monitor this website as all dates are subject to change and current dates are on the website. You may also contact the Notice Administrator by phone at (866) 302-7323. PLEASE DO NOT TELEPHONE THE COURT OR THE COURT CLERK’S OFFICE TO INQUIRE ABOUT THIS NOTICE OR THE LAWSUIT.
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SOURCE The Law Office of Peter Fredman PC and Hagens Berman Sobol Shapiro LLP