Dovenmuehle Mortgage $9M Phone Payment Fees Settlement

Homeowners who paid a fee to Dovenmuehle Mortgage for making a mortgage payment by phone or interactive voice response between April 10, 2020, and Jan. 13, 2026, may qualify to receive approximately $425 per transaction from a class action settlement. The settlement class includes approximately 3,401 individuals.

Dovenmuehle Mortgage Inc. agreed to pay $9 million to settle a class action lawsuit alleging it improperly charged "pay-to-pay" fees to North Carolina borrowers who made mortgage payments by phone or IVR. The plaintiff claimed these fees violated North Carolina law, specifically the North Carolina Debt Collection Act and the North Carolina Unfair and Deceptive Trade Practices Act.

Who is eligible to receive a mortgage fee settlement payout?

Class members must meet the following criteria:

• They had a residential mortgage loan securing property in North Carolina that Dovenmuehle Mortgage serviced or subserviced.
• They paid a fee to Dovenmuehle for making a mortgage loan payment by telephone or IVR between April 10, 2020, and Jan. 13, 2026.

How much are settlement payments?

Cash payment: Eligible class members will receive a cash payment estimated at $425 for each pay-to-pay fee they paid to Dovenmuehle during the qualifying period.

No claim form required

Class members do not need to submit a claim form to receive a settlement payment. Those who would like to receive an electronic payment can submit a payment preference online.

Payout options

• Venmo
• PayPal
• Direct deposit
• Paper check mailed to last known address

Settlement fund breakdown

The $9,000,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys’ fees and expenses: Up to $3,150,000
• Service award to class representative: Up to $25,000
• Payments to eligible class members: Remaining settlement funds

Important dates

• Deadline to opt out: Sept. 23, 2026
• Final approval hearing: Nov. 5, 2026

When is the Dovenmuehle Mortgage fee settlement payout date?

The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Dovenmuehle Mortgage Inc. violated North Carolina law by charging improper pay-to-pay fees for optional payment services when borrowers made mortgage payments by phone or IVR.

The company denies the allegations but agreed to settle to avoid the risk and uncertainty of continued litigation.

Sources

1. Class notice
2. Settlement website
3. Settlement agreement