Waldrup v. Countrywide

The Reminder Postcard was mailed to you to remind you to negotiate the check that was sent to you between October 2, 2020, and October 23, 2020. If you were a member of the Waldrup Settlement Class and received a payment in the form of a check and have not negotiated your check, a postcard was mailed to you. Please ignore the postcard If you have already negotiated your check.

Each member of the Class who has not excluded himself or herself from the Class will be eligible to receive a check ("Benefit Check") in an amount that represents a percentage of the appraisal fee assessed in connection with his, her, or their mortgage Loan or Loan application, Your check is issued pursuant to the terms of the class action Settlement in Waldrup v. Countrywide Financial Corporation.

The deadline to request a reissue of a settlement check was March 14, 2021. We are unable to honor reissue requests past this deadline.

This check is issued pursuant to the terms of the class action Settlement in Waldrup v. Countrywide Financial Corporation, Case No. 2:13-cv-08833-CAS-AGR. Those terms provided for the distribution of a second Settlement check to eligible Class Members under certain conditions identified in the Settlement Agreement. Consistent with those terms and conditions, this second Settlement check is being sent only to eligible Class Members who negotiated (e.g., cashed or deposited) the initial Settlement checks distributed to them in October 2020. Pursuant to the Court’s Final Approval Order, the second check and the check you were previously issued constitute full amount of your award. Please note that this check cannot be reissued.

The deadline to request a reissue of a settlement check was March 14, 2021. We are unable to honor reissue requests past this deadline.

Residual funds will be distributed according to the terms of the Settlement Agreement. For reference, all court documents can be found on the Important Documents page here.

Please see Paragraph 3.09 on Page 18 of the Settlement Agreement:

In the event the distribution of a second check is determined by the Settlement Administrator to be administratively infeasible because of cost or other reasons, all amounts that would be subject to distribution under this paragraph shall be distributed to the Center for Responsible Lending (or another cy pres recipient mutually agreeable to the Parties and approved by the Court).

The purpose of this website is to advise you of a proposed settlement (referred to as the "Settlement") of the Barbara Waldrup, individually and on behalf of others similarly situated v. Countrywide Financial Corporation, et al., Case No. 2:13-cv-08833-CAS-AGR (Consolidated with Case No. 2:16-cv- 04166-CAS-AGR) and Beckie Reaster, Rebecca Murphy, individually and on behalf of others similarly situated v. Countrywide Financial Corporation, et al., Case No. 2:16-cv-04166-CAS-AGR (Consolidated with Case No. 2:13-cv- 08833-CAS-AGR) consolidated lawsuits (the "Action") pending against Countrywide Financial Corporation, Countrywide Home Loans, Inc., Countrywide Bank, N.A. (collectively, "Countrywide"), Bank of America Corporation, LandSafe, Inc., and LandSafe Appraisal Services, Inc. ("LSA”) (collectively, "Defendants'') in the United States District Court for the Central District of California (the "Court").

This website was set up to summarize your rights in connection with the Settlement, and to inform you of a Court hearing to consider whether to grant Final Approval of the Settlement, to be held on July 13, 2020, at 10:00 a.m. before the Honorable Christina A. Snyder, United States District Judge of the United States District Court for the Central District of California, located at 350 W 1st St., Los Angeles, CA, 90012.

Plaintiffs Barbara Waldrup, Elizabeth Williams, Beckie Reaster, and Rebecca Murphy filed two lawsuits against Defendants in 2013 and 2016, respectively. In their complaints, Plaintiffs allege that they applied for home mortgage Loans from Countrywide, or affiliated entities, and that Countrywide ordered a property appraisal from LSA and charged Plaintiffs fees for those appraisals. Plaintiffs allege that the appraisals were not valid because they were not prepared in conformity with the Uniform Standards of Professional Appraisal Practice and Plaintiffs would not have paid the appraisal fees if they had known this information.

On February 6, 2017, the Court entered an order certifying the Action as a class action, and specifically certifying a Nationwide Class defined as "all residents of the United States of America who, during the period of January 1, 2003, through December 31, 2008, obtained an appraisal from LandSafe in connection with a Loan originated by Countrywide," and a Texas Class defined as "all residents of the State of Texas who, during the period January 1, 2003, through December 31, 2008, obtained an appraisal from LandSafe in connection with a Loan originated by Countrywide." The claims certified for class action treatment consisted of a claim for alleged violation of the federal Racketeer Influenced and Corrupt Organizations Act on behalf of the Nationwide Class and a claim for unjust enrichment under the common law of Texas on behalf of the Texas Class.

Defendants deny that Class certification was or remains appropriate (except for purposes of the proposed Settlement), deny that the certifications of compliance with the Uniform Standards of Appraisal Practice were false, deny that they acted unlawfully, and assert various legal and factual defenses against Plaintiffs' claims.

The Parties reached a Settlement before the Court resolved the claims and defenses of the Parties in the Action. Therefore, the Court never resolved whether Defendants did anything wrong.

This website should not be understood as an expression of any opinion by the Court as to the merits of the Plaintiff’s claims or Defendant’s defenses. Plaintiffs and Defendants recognize that to resolve these and other important issues would be time-consuming, uncertain, and expensive, which is part of the reason for the Settlement.

Plaintiffs and Defendants have entered into an agreement to settle the Action (the "Settlement Agreement"). The Court has preliminarily approved the Settlement Agreement as fair, reasonable, and adequate. The Court will hold the final Court Approval Hearing, as described in FAQ 14, to consider whether to make the Settlement final.

The Settlement Agreement defines the Class as:

You are a Class Member if, during the period of January 1, 2003, through December 31, 2008, you made a mortgage Loan application to Countrywide, in connection with which LSA obtained an appraisal, unless you successfully exclude yourself from the Class. This criteria for Class membership in the Class is intended to include the persons whom the Court originally defined as part of the Nationwide Class and Texas Class described above. It also includes all persons, including the Plaintiffs, who made any inquiry, expressed an interest in, or applied for credit from Countrywide during the time period, including but not limited to applications within the meaning of the Equal Credit Opportunity Act, so long as LSA obtained an appraisal in connection with it.

If you received a Postcard Notice about the proposed Settlement in the mail, then you meet these criteria and are a Class Member according to Defendant’s records. Further, if you have received more than one copy of a Notice in the mail, then that may be because you are a member of the Class as to more than one qualifying Loan or Loan application. In that event, you may, as discussed in FAQ 13, receive the benefits of the Settlement or take other actions with respect to the Settlement as to each Loan that qualifies you as a member of the Class. If you were a co-borrower, co-applicant, or co-obligor on a qualifying Loan, then you and your co-borrower(s), co-applicant(s), and/or co-obligor(s) will be treated as a single member of the Class for purposes of the proposed Settlement.

If you are still not sure if you are part of the proposed Settlement, you may contact the Settlement Administrator at 1-877-835-0768 or contact Class Counsel, listed in FAQ 11.

The key terms of the proposed Settlement are as follows.

1. Settlement Amount

Defendants have agreed to pay two hundred and fifty million dollars ($250,000,000.00) as the total and maximum dollar amount they will be obligated to pay if the Court grants Final Approval and all other contingencies are met. This amount includes all payments to:

1. Members of the Class in exchange for the Release (as described below);
2. The Plaintiffs as Class Representative Awards (as described below); and
3. The Plaintiff’s attorneys for attorneys' fees and litigation costs actually incurred in the Action (as described below).

This amount does not include an additional maximum of two million, five hundred thousand dollars ($2,500,000.00) Defendants have agreed to pay the Settlement Administrator for the costs of administering the Settlement, mailing the Postcard Notice to Class Members, publishing notice of the Settlement, providing the Benefit Checks to eligible Class Members, responding to inquiries from Class Members, and providing other Settlement administration services.

2. Settlement Benefit

Each member of the Class who has not excluded himself or herself from the Class will be eligible to receive a check ("Benefit Check") in an amount that represents a percentage of the appraisal fee assessed in connection with his, her, or their mortgage Loan or Loan application, excepting only that if Defendants' records about the amount of the appraisal fee assessed on a Loan are not available or are unreliable, then the Benefit Check will be for $25.00. Calculations of awards are final according to the terms of the settlement agreement. You do not need to contact anyone or submit any information to receive a Benefit Check.

The Benefit Checks will be paid exclusively from, and not in addition to, the Settlement Amount. The amount of the Benefit Checks could increase or decrease based on the factors set forth in the Settlement Agreement. As noted, if you are a Class Member with respect to more than one qualifying appraisal, you will be eligible to receive a Benefit Check for each appraisal.

3. The Release

Plaintiffs and all Class Members who have not excluded themselves from the Class will release certain claims against the Defendants, their affiliates, certain predecessors and successors, and other parties set forth in the Settlement Agreement. This is referred to as the "Release." Generally speaking, the Release will prevent any Class Member from bringing any lawsuit or making any claims that Defendants violated the law in connection with any property appraisals or appraisal-related services, or any other claims sufficiently related to those claims that could have been asserted in the Action. The terms of the Release, as set forth in the Settlement Agreement, can be found here.

The Release, as set forth in Paragraphs 4.01 through 4.03 of the Settlement Agreement and the Addendum to the Notice, will be effective as to every Class Member who has not excluded himself or herself from the Class, regardless of whether or not that Class Member receives or cashes a Benefit Check.

4. Attorneys' Fees/Litigation Costs and Class Representative Awards

The Court will determine the amount of attorneys' fees and litigation costs to award to Plaintiffs' Counsel from the Settlement Amount for investigating the facts and law in the Action, litigating the Action since 2013, and negotiating the proposed Settlement of the Action. Plaintiffs' Counsel will ask the Court to award them attorneys' fees and litigation costs from the Settlement Amount in the amount not to exceed $62,500,000.00 (or 25% of the Settlement Amount). Plaintiffs' Counsel will also ask the Court to award the Representative Plaintiffs (Ms. Waldrup, Ms. Reaster, and Ms. Murphy) an amount of up to $15,000.00 each from the Settlement Amount for their services to the Class. Plaintiffs' Counsel will make their request in a motion for attorneys' fees and litigation costs to be filed with the Court at least 60 days before the Court Approval Hearing. After the Motion for Attorneys' Fees and Litigation Costs is filed, copies will be available from Class Counsel, from the Court docket, and on this website.

Any attorneys' fees, litigation costs, or award to the class representatives approved by the Court will be paid by Defendants exclusively from (and not in addition to) the Settlement Amount.

5. Settlement Administration

In addition to the Settlement Amount, Defendants have agreed to pay costs of administrating the Settlement up to a maximum of two million, five hundred thousand dollars ($2,500,000.00). In the event that the costs of administrating the Settlement exceed that amount, the excess shall be paid exclusively from the Settlement Amount prior to the computation of the amount of the Benefit Checks due under the Settlement.

6. Dismissal of the Action

If the Settlement is approved by the Court and becomes final, the Action will be dismissed with prejudice. Benefit Checks will be provided to eligible Class Members, and no recovery to the Class will be available other than the one set forth in the Notice and in the Settlement Agreement. If the Settlement is not approved by the Court or does not become final for any reason, the Action will continue, and Class Members will not be entitled to receive a Benefit Check.

NOTE: The above sections provide only a general summary of the terms of the proposed Settlement. You can review the Settlement Agreement itself for more information about the exact terms of the proposed Settlement.

The Court has appointed the attorneys from the following law firms to act as counsel for the Class (referred to as "Class Counsel" or "Plaintiffs' Counsel") for purposes of the proposed Settlement.

Daniel Alberstone Roland Tellis Mark Pifko Evan Zucker Baron & Budd, P.C. 15910 Ventura Boulevard Suite 1600 Encino, CA 91436  1-818-839-2333  dalberstone@baronbudd.com  rtellis@baronbudd.com  mpifko@baronbudd.com  ezucker@baronbudd.com

Steve W. Berman Hagens Berman Sobol Shapiro LLP 1918 3rd Avenue Suite 98101 Seattle, WA 98101  1-206-623-7292  steve@hbsslaw.com

Christophe R. Pitoun Hagens Berman Sobol Shapiro LLP 301 North Lake Avenue Suite 920 Pasadena, CA 91101  1-213-330-7150  christopherp@hbsslaw.com

Plaintiffs and Defendants agreed on all of the terms of the proposed Settlement through extensive arm’s length negotiations between Plaintiffs' Counsel and Counsel for the Defendants, with the able assistance of a court-appointed, third-party Mediator, Eric Green of Resolutions, LLC. The Parties have entered into the proposed Settlement after weighing the benefits of the Settlement against the probabilities of success or failure in the Action, and against the delays that would be likely if the Action proceeded to trial and, after trial, to appeal.

Plaintiffs and Plaintiffs' Counsel have concluded that the proposed Settlement provides substantial benefits to the Class, avoids prolonged litigation, and is in the best interests of the Class. Plaintiffs and Plaintiffs' Counsel have concluded that the proposed Settlement is fair, reasonable, and adequate.

Defendants firmly deny any wrongdoing and any liability whatsoever, but believe that it is in their best financial interest to settle the Action on the terms set forth in the Settlement Agreement in order to avoid further expense, uncertainty, inconvenience, and business disruption as a result of the Action.

As defined further in the Settlement Agreement, you have the following rights in this proposed Settlement.

You can participate in the proposed Settlement:

You do not need to do anything in order to participate in the proposed Settlement and be eligible to receive the Benefit Check as described in FAQ 10. If you do nothing, you will be represented by Plaintiffs and Plaintiffs' Counsel. You will not be billed for their services. Plaintiffs' Counsel will receive a fee only if the Court approves the Settlement and the fee award, if any, will be set by the Court. If you participate in the Settlement, you will be bound by any judgment or other final disposition of the Action, including the Release set forth in the Settlement Agreement, and will be precluded from pursuing claims against Defendants separately if those claims are within the scope of the Release.

You can opt out of the proposed Settlement:

The deadline to exclude yourself from the Settlement was June 15, 2020, and has passed.

You can object to the proposed Settlement:

The deadline to object to the Settlement was June 15, 2020, and has passed.

You can appear at the Fairness Hearing:

The Fairness Hearing was on July 13, 2020.

You can submit other motions or submissions concerning the Action or the proposed Settlement:

It is not necessary for you to submit any motion concerning the Action or proposed Settlement to the Court. If you have not excluded yourself from the proposed Settlement and want to submit a motion to the Court concerning the Settlement or the Action, then you must properly file a motion, together with all supporting documents, in the Action with the Clerk of Court of the United States District Court for the Central District of California, and must mail or hand-deliver a copy of the motion, together with all supporting documents, to Class Counsel and Counsel for the Defendants at the addresses set forth in FAQ 16 by June 15, 2020.

On July 16, 2020, Judge Christina A. Snyder of the United States District Court for the Central District of California, Western Division granted Final Approval to the class action Settlement in Waldrup v. Countrywide.

The descriptions of the Action, the proposed Settlement, and the Settlement Agreement in this website are only a general summary. In the event of a conflict between this website and the Settlement Agreement, the terms of the Settlement Agreement control.

A copy of the Settlement Agreement, along with other court documents, are available for download from the Important Documents page of this website. Additionally, all papers filed in this Action, including the full Settlement Agreement, are available for you to inspect and copy (at your cost) at the office of the Clerk of Court or online through PACER (www.pacer.gov). Lastly, a copy of the Settlement Agreement may also be obtained from Class Counsel by contacting them at the addresses or telephone numbers set forth in FAQ 16.

Any questions concerning this website, the Notice, the Settlement Agreement, or the proposed Settlement may be directed to Class Counsel. You may also seek the advice and counsel of your own attorney, at your own expense, if you desire.

DO NOT WRITE OR TELEPHONE THE COURT, THE CLERK'S OFFICE, OR DEFENDANTS WITH ANY QUESTIONS ABOUT THIS WEBSITE, THE NOTICE, THE SETTLEMENT, OR THE SETTLEMENT AGREEMENT.