Chao v. Aurora Loan Services, LLC Settlement Website
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Frequently Asked Questions


  1. What is this lawsuit about?
  2. Am I a class member in this matter?
  3. What does the settlement provide?
  4. How are the attorneys and administrator being paid?
  5. How is the net settlement fund being paid?
  6. Describe the Rosenthal Act Net Settlement Fund
  7. Describe the Restitution Net Settlement Fund
  8. What if I am a member of both classes?
  9. Am I giving anything up by being part of the settlement?
  10. What if the payment information from Aurora's records set forth on the "Payment Documentation Form" is incorrect?
  11. What kind of documentation will you accept?
  12. What if I do not want to be a part of this settlement?
  13. What if I do not like the settlement?
  14. When is the final fairness hearing?
  15. Can I contact class counsel?

 



  1. What is this lawsuit about?

    This class action lawsuit alleges that Defendant Aurora Loan Services LLC (“Aurora”) violated the legal rights of its customers in the following ways: (a) by sending defaulted California customers a Special Forbearance Agreement, also called a Workout Agreement or Foreclosure Avoidance Agreement (“SFA”), that was deceptive under the Rosenthal Unfair Debt Collection Practices Act; (b) by collecting the required payments under SFAs, but not offering customers a bona fide opportunity to cure the arrearages on their loans; and (c) by collecting additional payments after the completion of the term of the SFA, but not offering customers a bona fide opportunity to cure the arrearages on their loans.

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  2. Am I a class member in this matter?

    The Court has certified the following classes for settlement purposes:

     

    The Rosenthal Act Settlement Class

    All California residential mortgage customers, to whom Aurora sent the “Workout Agreement,” later called the “Foreclosure Alternative Agreement,” or substantially identical correspondence on or after June 8, 2009.

     

    The Restitution Settlement Class

    All California residential mortgage customers to whom Aurora sent the “Workout Agreement,” later called the “Foreclosure Alternative Agreement,” or substantively identical correspondence on or after June 8, 2006, who made the trial payments required by their final Workout Agreement, did not thereafter enter into a repayment plan or HAMP trial payment plan, were not thereafter offered a loan modification by Aurora, and were thereafter foreclosed upon.

     

    The Restitution Settlement Class contains the “Excess Payment Subclass” who made additional payments to Aurora after the term of their SFA expired.

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  3. What does the settlement provide?

    Pursuant to the Settlement Agreement, Aurora has agreed to establish a non-reversionary Gross Settlement Fund of Five Million, Two Hundred Fifty Thousand Dollars ($5,250,000.00). This Fund will be used to provide monetary relief to all Settlement Class Members who do not timely opt out of the Settlement (“Eligible Class Members”).

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  4. How are the attorneys and administrator being paid?

    The following amounts will be deducted from the Gross Settlement Fund: any amounts approved by the Court for: (a) service awards for the Named Plaintiffs for their efforts in bringing and prosecuting this case (not to exceed $7,500 each); (b) attorneys’ fees and costs to Class Counsel (not to exceed thirty percent of the Gross Settlement Fund and Class Counsel’s actual expenses); and (c) the costs of the Claims Administrator. The Court has not yet decided whether to award some or all of these amounts, but to the extent that any amounts are awarded, they will be deducted from the Gross Settlement Fund and the remainder will constitute the Net Settlement Fund.

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  5. How is the net settlement fund being paid?

    The Net Settlement Fund shall be distributed by check to Eligible Class Members in proportion to each Eligible Class Member’s “Settlement Damages” as calculated by Class Counsel based upon the Class Data produced by Aurora and supplemented, if needed, by Eligible Class Members pursuant to this Notice. The Settlement Damages for Settlement Class Members is the sum of: (a) their Rosenthal Act Settlement Damages; and (b) their Restitution Settlement Damages.


    The Net Settlement Fund shall be divided into the “Rosenthal Act Net Settlement Fund” and the “Restitution Net Settlement Fund.”

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  6. Describe the Rosenthal Act Net Settlement Fund

    Rosenthal Act class-wide damages are capped by California law at $500,000. As a result, the Rosenthal Act Net Settlement Fund shall be $500,000 multiplied by the ratio of the Net Settlement Fund to the Gross Settlement Fund. By way of example only, if the Net Settlement Fund is $3,600,000, then the Rosenthal Act Net Settlement Fund would be $500,000 * ($3,600,000/$5,250,000) = $342,857.

     

    “Rosenthal Act Settlement Damages” for Eligible Rosenthal Act Settlement Class Members shall be an equal share of the Rosenthal Act Net Settlement Fund. By way of example only, if the Rosenthal Act Net Settlement Fund is $342,857 and there are 12,000 Eligible Rosenthal Act Settlement Class Members, then Rosenthal Act Settlement Damages shall be $342,857 / 12,000 = $28.57. 

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  7. Describe the Restitution Net Settlement Fund

    The Restitution Net Settlement Fund shall be the Net Settlement Fund less the Rosenthal Act Net Settlement Fund. By way of example only, and carrying forward the assumptions immediately above, if the Net Settlement Fund is $3,600,000 and the Rosenthal Act Net Settlement fund is $342,857, then the Restitution Net Settlement Fund would be $3,600,000-$342,857 = $3,257,143.


    “Restitution Settlement Damages” for Eligible Restitution Settlement Class Members shall be based pro rata upon each Eligible Restitution Settlement Class Members’ payments to Aurora under their Workout Agreement, and (for Excess Payment Subclass Members) following the term of their Workout Agreement. By way of example only, if the Restitution Net Settlement Fund is $3,257,143, and an Eligible Restitution Settlement Class member paid $8,000 to Aurora under their Workout Agreement, and paid $8,000 to Aurora following their Workout Agreement, and the total of all payments to Aurora by Eligible Restitution Settlement Class Members was $28,000,000, then that Eligible Restitution Settlement Class Member would have Restitution Settlement Damages of:

    (($8,000+$8,000)/$28,000,000)*$3,257,143= $1,861.22.

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  8. What if I am a member of both classes?

    Settlement Damages for each Settlement Class Member shall be the sum of their Rosenthal Act Settlement Damages and their Restitution Settlement Damages.

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  9. Am I giving anything up by being part of the settlement?

    In exchange for the monetary relief provided by the Settlement Agreement, all Settlement Class Members who do not timely exclude themselves by opting out of the settlement will release Aurora Loan Services LLC and each of its past, present and future parents, subsidiaries, members, divisions, affiliates, affiliated companies and corporations, joint venturers, directors, officers, managers, employees, general partners, limited partners, principals, agents, insurers, reinsurers, shareholders, attorneys, advisors, legal representatives, consultants, representatives, predecessors, successors, independent contractors, or related entities, and each and all of their executors, predecessors, successors and assigns, from all claims actually made or that could have been made on behalf of Settlement Class Members based on the facts asserted in the Second Consolidated Amended Complaint through September 5, 2014 (“Released Claims”). Releasing Parties who are only members of the Rosenthal Act Settlement Class (i.e., are not members of the Restitution Settlement Class) shall only release, resolve, relinquish and forever discharge their right and ability to bring claims under or based on the California Rosenthal Act against the Released Parties.

    For more information, please see the Notice.

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  10. What if the payment information from Aurora's records set forth on the "Payment Documentation Form" is incorrect?

    You may complete and sign the “Payment Documentation Form” and provide documentation of payments that you made to Aurora under your SFA and after the term of your SFA expired. Note that under the terms of the settlement you must have made at least all of the payments required under your SFA to be a member of the Restitution Settlement Class.

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  11. What kind of documentation will you accept?

    The Settlement Administrator will accept documentation of payments to Aurora if your Payment Documentation Form has been completed and signed and you have provided one of the following for each claimed payment that matches the amount of payment required under your SFA: (1) cancelled check; (2) credit card or debit card receipt or charge slip; (3) money order or cashiers’ check receipt; (4) bank account statement showing a payment to Aurora; (5) credit card statement showing a payment to Aurora; or (6) a receipt or acknowledgment of payment from Aurora.

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  12. What if I do not want to be a part of this settlement?

    If you are in either the Rosenthal Act Settlement Class or the Restitution Settlement Class and you do not wish to participate in this settlement, in which case, you will not receive any portion of the Settlement Funds and you will not be bound by the release set forth above, then you must submit a written statement requesting exclusion from the settlement (“opt-out”) postmarked no later than December 15, 2014. Your written request for exclusion must contain your name, address, telephone number and email address, and be personally signed by you. No opt-out request may be made on behalf of a group of Settlement Class Members. The opt-out request must be sent by mail to the Claims Administrator at:


    Aurora Workout Agreement Settlement Claims Administrator
    c/o Gilardi & Co. LLC
    P.O. Box 8060
    San Rafael, CA 94912-8060

    and must be timely postmarked as set forth above. Any Settlement Class Member who requests exclusion from (opts out of) the settlement will not receive any money from the settlement and will not be bound by the Settlement Agreement or have any right to object, appeal or comment thereon.

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  13. What if I do not like the settlement?

    If you wish to object to the settlement, you must mail a written statement of your objection to the Claims Administrator at:


    Aurora Workout Agreement Settlement Claims Administrator
    c/o Gilardi & Co. LLC
    P.O. Box 8060
    San Rafael, CA 94912-8060

    postmarked no later than December 15, 2014. You must include the basis for your objection, as well as your name, address, telephone number, and email address, and the objection must be personally signed by you. In addition, you must identify any previously filed objections by you or your counsel in any state or federal court. This listing must contain (a) the name of the case; (b) the case number; and (c) the court in which the objection was filed. The postmark date of the mailing envelope is the exclusive means that will be used to determine whether an objection is timely submitted. Settlement Class Members who fail to make objections in the manner specified above shall be deemed to have waived any objections and shall be foreclosed from making any objection (whether by appeal or otherwise) to the Settlement Agreement.

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  14. When is the final fairness hearing?

    On January 13, 2015, at 1 pm before the Honorable Saundra B. Armstrong at the United States District Court, located at 1301 Clay Street, 2nd floor, Oakland, CA 94612, the Court will hold a Final Fairness Hearing to determine whether to grant final approval to the proposed settlement and determine the appropriate amount of compensation to be awarded to Class Counsel and the Class Representatives out of the Gross Settlement Fund. You may, but are not required to attend this hearing. You may also enter an appearance in the case through your own attorney, if you so desire.

    PLEASE DO NOT CONTACT THE COURT

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  15. Can I contact class counsel?

    You may also contact Class Counsel, as follows:

     

    Ali Abtahi (224688)

    ABTAHI LAW FIRM

    1012 Torney Ave.

    San Francisco, CA 94129

    Tel: (415) 639-9800

    Fax: (415) 639-9801

    aabtahi@abtahilaw.com          

     

    Andrew Oldham (144287)

    LAW OFFICE OF ANDREW OLDHAM

    901 Campisi Way, Suite 248

    Campbell, CA 95008

    Telephone: (888) 842-4930

     

    Thomas E. Loeser

    HAGENS BERMAN SOBOL SHAPIRO LLP

    1918 Eighth Avenue, Suite 3300

    Seattle, WA 98101

    Telephone: (206) 623-7292

    Facsimile: (206) 623-0594

    Email: toml@hbsslaw.com      

     

    T. Christopher Tuck

    RICHARDSON, PATRICK, WESTBROOK & BRICKMAN, LLC

    1037 Chuck Dawley Blvd., Bldg. A

    PO Box 1007

    Mt. Pleasant, SC 29464

    (843) 727-6515

    ctuck@rpwb.com

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