In a legal showdown that could reshape the landscape for mortgage loan officers, a collective action against PHH Mortgage Corp. has gained momentum as a New Jersey U.S. District Judge, Karen M. Williams, issued a pivotal Thursday order.
Class Certification Granted, But Battle Continues
Judge Williams declared the certification of a class in a collective action filed against PHH Mortgage, accusing the company of labor law violations related to overtime pay miscalculations. The certified class encompasses individuals who served as mortgage loan officers for PHH Mortgage between Jan. 18, 2020, and Jan. 1, 2023.
However, the judge emphasized that the certification does not constitute an admission of liability on PHH’s part. The corporation retains the right to pursue decertification or contest the inclusion of specific class members.
Phh Mortgage Loan Officers Win Collective Certificate : Origins of the Dispute
The legal saga commenced when Edward F. Martin, a former mortgage loan officer, initiated the proposed class and collective action against PHH Mortgage in December 2022. Martin alleged that the company violated the Fair Labor Standards Act by inadequately compensating overtime pay on commissions.
