delgado settlement agmnt final word 2-8-19 barbara lightcap, william lightcap, theresa mccullough,...

Exhibit 1

Case 1:13-cv-04427-NGG-ST Document 415-1 Filed 02/08/19 of 79 PageID #: 12580

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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

MARGARITA DELGADO, et al., Individually and on Behalf of All Others Similarly Situated, Plaintiffs, v. OCWEN LOAN SERVICING, LLC, et al., Defendants.

Case No. 1:13-cv-04427 (NGG) (ST)

CLASS ACTION SETTLEMENT AGREEMENT

Plaintiffs Margarita Delgado, William Sheppard, Geraldine Mahood, Kevin Chowning,

Lya Chowning, Paul Emmert, Carolyn Toth, Brian Rafacz, Jennifer Hendricks, Cynthia Beniwal,

Kimberly Kayes, Justin Wisnewski, Laurie Cheamitru, Dale Zimmer, Michael Benhamu,

Meghan Fox, Dan Wilkinson, Kent Collier, Theresa McCullough, Ben Elliott, Jason Abt, Nathan

May, Cami Peloza, and Terry Oliver, acting individually and on behalf of the Settlement Class

identified below (collectively, “Plaintiffs” or, individually, a “Plaintiff”), Class Counsel (as

defined below), and Defendants Ocwen Loan Servicing, LLC (“Ocwen”), Cross Country Home

Services, Inc. (“CCHS”), and Sandra Finn (“Finn”), (collectively, “Defendants”) enter into this

Settlement Agreement (“Agreement”) as of the last date signed below. 1

Subject to the Court’s approval, the Parties hereby stipulate and agree that, in

consideration for the promises and covenants set forth in this Agreement and upon the entry by

1 Plaintiffs and Defendants are collectively referred to herein as the “Parties” and each, individually, as a “Party.” Capitalized terms used herein are defined in Section II of this Agreement or indicated in parentheses elsewhere in this Agreement.


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the Court of a Final Approval Order and Judgment and the occurrence of the Effective Date, the

case styled Delgado et al. v. Ocwen Loan Servicing, LLC, Case No. 1:13-cv-04427 (the

“Action”), shall be settled and compromised upon the terms and conditions contained herein.

I. RECITALS

1.1 Plaintiffs Margarita Delgado and William Sheppard filed a class action complaint

against Defendants Ocwen Loan Servicing, LLC, Ocwen Mortgage Servicing, Inc., Ocwen

Financial Corporation, Ronald M. Faris, Scott W. Anderson, Cross Country Home Services, Inc.,

Homesure of America, Inc., Homesure Services, Inc., Homesure Protection of California, Inc.,

Homesure of Virginia, Inc., Josepha Incandela, Sandra Finn, and John Does 1-10 on August 6,

2013 in the United States District Court for the Eastern District of New York.

1.2 On November 15, 2013, Plaintiffs filed their First Amended Class Action

Complaint with Naihuai Xu and Geraldine Mahood being added as Plaintiffs. At this time, the

lawsuit was limited to Defendants Ocwen Loan Servicing, LLC, Cross Country Home Services,

Inc., Sandra Finn, and John Does 1-10.

1.3 On February 24, 2014, Defendants filed their Motions to Dismiss the First

Amended Complaint.

1.4 On September 23, 2014, the Court granted in part and denied in part Defendants’

Motions to Dismiss the First Amended Complaint.

1.5 On November 20, 2014, Plaintiffs filed their Second Amended Class Action

Complaint with Kevin Chowning, Lya Chowning, Paul Emmert, Carolyn Toth, Brian Rafacz,

Jennifer Hendricks, Cynthia Beniwal, Kimberly Kayes, Brett Ballard, Derek Willis, Katelyn

Willis, Laurie Cheamitru, Dale Zimmer, Michael Benhamu, Dan Wilkinson, Kent Collier,

Barbara Lightcap, William Lightcap, Theresa McCullough, Ben Elliott, Jason Abt, Melanie

Borthwick, Nathan May, Cami Peloza, and Terry Oliver being added as Plaintiffs.


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1.6 On April 9, 2015, Plaintiffs filed their Third Amended Class Action Complaint

with Meghan Fox being added as a Plaintiff.

1.7 On May 21, 2015, Defendants CCHS and Sandra Finn filed a Motion to Compel

Arbitration.

1.8 On August 31, 2015, Defendants jointly filed a Motion to Dismiss Plaintiffs’

Third Amended Complaint.

1.9 On September 2, 2016, the Court denied without prejudice Defendants’ Motion to

Dismiss and Defendants CCHS and Sandra Finn’s Motion to Stay and Compel Arbitration,

pending trial on the issue of whether each of 13 Plaintiffs formed a contract with CCHS.

1.10 On October 12, 2016, Plaintiffs filed a Motion for Class Certification.

1.11 On November 21, 2016, by way of Stipulation of Voluntary Dismissal Pursuant to

FRCP 41(a)(1)(A)(ii), the claims of Plaintiffs Brett Ballard, Derek Willis, and Katelyn Willis

were voluntarily dismissed.

1.12 Trial on CCHS’s motion to compel arbitration was scheduled for April 2017, for

which the Parties prepared and submitted more than a dozen motions in limine, among other

pretrial submissions. CCHS withdrew its motion to compel on March 13, 2017, and the Parties

then agreed to submit a joint motion to forego trial on the motion to compel on March 20, 2017,

which the Court granted to allow further amendment of the Complaint and additional dispositive

motion practice.

1.13 On April 14, 2017, Plaintiffs filed their Fourth Amended Class Action Complaint

with Justin Wisnewski being added as a Plaintiff.

1.14 On June 29, 2017, Defendants jointly filed their Motion to Dismiss Plaintiffs

Fourth Amended Complaint and Strike Class Allegations.


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1.15 On November 2, 2017, by way of Stipulation of Voluntary Dismissal Pursuant to

FRCP 41(a)(1)(A)(ii), the claims of Plaintiffs Naihuai Xu, Barbara Lightcap, William Lightcap,

and Melanie Borthwick were voluntarily dismissed.

1.16 On November 9, 2017 the Court granted in part and denied in part Defendants’

Motion to Dismiss Plaintiffs’ Fourth Amended Complaint and Strike Class Allegations.

1.17 On January 13, 2018, Plaintiffs supplemented their motion for class certification,

and on February 9, 2018 Defendants supplemented their opposition to Plaintiffs’ motion for class

certification. Class certification briefing was ongoing at the time the Parties reached an

agreement on the material terms of a settlement.

1.18 Over the course of the Action, the Parties vigorously litigated and engaged in

extensive discovery efforts, including:

a. The Parties participated in more than thirty-five conferences (discovery, pretrial,

and settlement) before Magistrate Judges Levy and Tiscione;

b. Cumulatively the Parties filed more than thirty contested discovery and related

motions;

c. Defendants made over 75 separate document productions resulting in Plaintiffs’

reviewing over 400,000 pages of documents;

d. Plaintiffs deposed eight CCHS current or former senior executives and employees

and three Ocwen current or former senior executives and employees, and issued

twelve third party subpoenas;

e. Defendants deposed twenty-six Plaintiffs and proposed class representatives;

f. Defendants issued five third party subpoenas and deposed Plaintiffs’ marketing

expert witness.


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1.19 On April 24, 2018, after having participated in four days of mediation sessions,

first with a lengthy all-day mediation near Defendants’ headquarters in Florida with nationally

respected mediator Rodney Max, and later on three separate full day mediations with Magistrate

Judge Tiscione, the Parties held their fifth day of mediation at an in-person mediation conference

overseen by a nationally respected mediator, David Geronemus of JAMS. Although the April

24 mediation did not resolve the case, the Parties continued to negotiate for three more months

with the assistance of Mediator Geronemus, who continued to facilitate discussions between the

Parties in an attempt to resolve the Action.

1.20 On July 19, 2018, after many months of vigorous, arms-length, good faith

negotiations, the Parties reached an agreement on the material terms of a settlement and signed a

Memorandum of Understanding, which memorialized, subject to negotiation and execution of

this Agreement, and subject to Preliminary Approval and Final Approval by the Court as

required by Federal Rule of Civil Procedure 23, the Parties’ good faith intention to fully, finally

and forever resolve, discharge and release all rights and claims of Plaintiffs and the Settlement

Class Members (defined below) in exchange for CCHS’s agreement to pay up to the sum of

Twenty-Four Million Eight-Hundred Twenty-Four Thousand Six-Hundred Twenty-Two Dollars

($24,824,622) (subject to update at time of final approval) to fund claims as described further

below.

1.21 The Parties now agree to settle the Action in its entirety, without any admission of

liability, with respect to all Released Claims (defined below) by the Settlement Class Members.

The Parties intend this Agreement, once it is finally approved and becomes effective, to bind

Plaintiffs, CCHS, Ocwen and all Settlement Class Members.

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth

in this Agreement, as well as the good and valuable consideration provided for herein, the Parties


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hereto agree to a full complete settlement of the Action on the terms and conditions set forth

herein, which are subject to the Courts’ approval under Federal Rule of Civil Procedure 23.

II. DEFINITIONS

As used in this Agreement and the attached exhibits (which are an integral part of the

Settlement and are incorporated in their entirety by reference), the following terms shall have the

meanings set forth below, unless this Agreement specifically provides otherwise. Other

capitalized terms in this Agreement but not defined in this Section shall have the meanings

ascribed to them elsewhere in this Agreement.

2.1 “Administration Expenses” means reasonable fees and expenses incurred by the

Settlement Administrator in performing or having performed the tasks given to the Settlement

Administrator pursuant to this Agreement and any Court orders implementing this Settlement,

including effectuating the notice and notice plan, and in the administration of the Settlement and

to secure performance as forth in this Settlement, estimated to be Three Hundred Thousand

Dollars ($300,000).

2.2 “Agreement” means this class action settlement agreement containing all terms,

conditions, and exhibits which constitute the entire agreement between the Parties.

2.3 “Attorneys’ Fees and Costs” means such funds as may be awarded by the Court

based on the Settlement described herein to compensate Class Counsel as determined by the

Court, as described more particularly in Section VIII of this Settlement.

2.4 “Benefit” means payment made to Settlement Class Members who file timely

Valid Claims pursuant to the Settlement Agreement.

2.5 “Claim” means a request for relief pursuant to this Agreement submitted by the

Settlement Class Member on a Claim Form filed with the Settlement Administrator in

accordance with the terms of this Settlement.


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2.6 “Claim Deadline” means the date by which a Claim Form must be postmarked or

submitted to the Settlement Administrator electronically by 11:59 p.m. on the last day of the

Claim Period.

2.7 “Claim Form” means the form attached hereto as Exhibit A, whether in electronic

or hard copy, that will be completed by the Settlement Class Member and submitted to the

Settlement Administrator on or before the Claim Deadline in order to receive a Benefit under the

Settlement.

2.8 “Claim Period” means the period of time during which a Settlement Class

Member must submit a Claim Form to be eligible to receive a Benefit as part of the Settlement.

The Claim Period shall commence not later than thirty (30) days after the Preliminary Approval

Date, as defined herein, so long as Notice is mailed no later than thirty (30) days after the

Preliminary Approval Date, and shall conclude not more than sixty (60) days after it commences.

2.9 “Class Counsel” means Wittels Law, P.C. and Cowan, Liebowitz & Latman, P.C.

2.10 “Class Notice” means the notices to Class Members inclusive of the Short Form

Notice and the Long Form Notice.

2.11 “Class Period” means August 6, 2009 through the date of final approval.

2.12 “Class Representatives” means Plaintiffs Margarita Delgado, William Sheppard,

Geraldine Mahood, Kevin Chowning, Lya Chowning, Paul Emmert, Carolyn Toth, Brian Rafacz,

Jennifer Hendricks, Cynthia Beniwal, Kimberly Kayes, Justin Wisnewski, Laurie Cheamitru,

Dale Zimmer, Michael Benhamu, Meghan Fox, Dan Wilkinson, Kent Collier, Theresa

McCullough, Ben Elliott, Jason Abt, Nathan May, Cami Peloza, and Terry Oliver.

2.13 “Complaint” means the Fourth Amended Class Action Complaint filed in this

Action on April 14, 2017.


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2.14 “Court” means the United States District Court for the Eastern District of New

York.

2.15 “Effective Date” means the fifth (5th) business date after the last of the following

conditions have been satisfied: (a) all Parties and their counsel have executed this Settlement

Agreement; (b) the Court has entered the Final Approval Order and Judgment certifying the

Class, and approving the Settlement; and (c) and the date on which the time to appeal or to seek

permission to appeal from the Court’s approval of the Settlement Agreement has expired or, if

appealed, approval of the Settlement Agreement has been affirmed in its entirety by the court of

last resort to which such appeal has been taken and such affirmance is no longer subject to

further appeal or review, or upon the denial of a writ of certiorari to review the order and final

judgment from any court making the Final Approval Order and Judgment a final, non-appealable

judgment. For purposes of this paragraph, an “appeal” shall not include any appeal that concerns

solely the issue of Class Counsel’s request for Attorneys’ Fees and Costs and Named Plaintiff

Service Awards.

2.16 “Final Approval Hearing” means the final hearing to be conducted by the Court,

on notice to the Settlement Class, to consider approval of the Settlement and Class Counsel’s

motion for approval of Attorneys’ Fees and Costs and Named Plaintiff Service Awards, as

described further in Section XIII.

2.17 “Final Approval Order and Judgment” means the Order granting final approval to

the Settlement, as described further in Paragraph 13.2, which should not be entered earlier than

ninety (90) days after the appropriate state and federal officials have been served with notice of

the Settlement in accordance with the Class Action Fairness Act of 2005, as codified at 28

U.S.C. § 1715(d).


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2.18 “Long Form Notice” means the form of Class Notice addressed to Class

Members, attached hereto as Exhibit B, which contains, inter alia, all material terms of the

Settlement, the benefits to Settlement Class Members, and all details relevant to the Final

Approval Hearing.

2.19 “Named Plaintiff Service Awards” means the monetary amounts awarded by the

Court in recognition of the assistance provided by Plaintiffs and former Plaintiffs in the

prosecution of the Action, the amount of which is as set forth in Paragraph 8.2. Any and all

Named Plaintiff Service Awards will be paid from the Settlement Amount.

2.20 “Notice to Current Enrollees” means the form notice attached hereto as Exhibit C

and described further in Paragraph 6.1.

2.21 “Objection” means an objection filed with the Court by a member of the

Settlement Class objecting to any aspect of the Settlement, following the procedures set forth in

Section IX below.

2.22 “Objection Deadline” shall be the last day of the Claim Period, and will be

specified in the Preliminary Approval Order and Class Notices.

2.23 “Opt-Out” means a request by a Class Member to be excluded from the applicable

Settlement Class by following the procedures set forth in Section IX below.

2.24 “Opt-Out Deadline” shall be the last day of the Claim Period, and will be

specified in the Preliminary Approval Order and Class Notices.

2.25 “Person” means any natural person, corporation, partnership, business

organization or association, or other type of legal entity.

2.26 “Preliminary Approval Date” means the date on which the Court enters the

Preliminary Approval Order.


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2.27 “Preliminary Approval Order” means the Order preliminarily approving the

Settlement, certifying the Settlement Class for the purposes set forth in this Agreement, and

approving the form of notice to potential Class Members, and shall be substantially in the form

of Exhibit D to this Agreement.

2.28 “Released Claims” means all claims to be released as specified in Section XII of

this Agreement. The “Releases” means all of the releases contained in Section XII of this

Agreement.

2.29 “Released Parties” means those persons and entities released in Section XII

below.

2.30 “Releasing Parties” means Plaintiffs and all Settlement Class Members, and each

of their respective heirs, assigns, beneficiaries and successors.

2.31 “Settlement” means all of the terms, conditions, and requirements embodied in

and exhibits attached to this Agreement.

2.32 “Settlement Administrator” means the person or entity mutually agreed upon by

Defendants and Class Counsel who will be charged with the administrative responsibilities of the

Settlement on behalf of Defendants and all related tasks set forth in Section VII, including,

among other things, determining the applicable Benefit for each Settlement Class Member in

accordance with data provided by Defendants. The Settlement Administrator, subject to Court

approval, will be Heffler Claims Group.

2.33 “Settlement Amount” means Defendants’ total and maximum monetary liability

under this Settlement, which is not to exceed Twenty-Four Million Eight-Hundred Twenty-Four

Thousand Six-Hundred Twenty-Two Dollars ($24,824,622) (subject to update at time of final

approval), plus all costs of Administration, to be paid in the manner described in Section V.


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2.34 “Settlement Class” means current and former Ocwen, GMAC, and Homeward

Residential customers who (a) were enrolled in one or more CCHS warranty or home service

plans between August 6, 2009 and December 31, 2013 after cashing or depositing one of

CCHS’s check solicitations (“Plans”), (b) made one or more payments for a Plan, (c) never made

a claim under a Plan, and (d) never received a full refund of all premiums paid for a Plan. This

Settlement Class includes some former GMAC and Homeward Residential customers whose

loans were never serviced by Ocwen. Potential members of the class are referred to herein as

“Class Members.” Excluded from the Settlement Class are: Ocwen; CCHS; their current and

former employees; any entity in which Ocwen or CCHS has a controlling interest; any affiliate

or legal representative of Ocwen or CCHS; the Judges to whom this case is assigned and any

member of the Judges’ immediate family; and any heirs, assigns, and successors of any of the

above persons or organizations in their capacity as such in the Action are assigned and any

members of their immediate families.

2.35 “Settlement Class Members” means any person in the Settlement Class who does

not timely opt out of the Settlement.

2.36 “Settlement Website” means the Internet website created and maintained by the

Settlement Administrator, which shall include information about the Action and the Settlement

terms applicable to the Settlement Class, relevant documents, and electronic and printable forms

relating to the Settlement. The Settlement Website shall be activated contemporaneously with

the mailing of Class Notices. The URL of the Settlement Website shall be provided in the Class

Notices.

2.37 “Short Form Notice” means the form of Class Notice addressed to Class

Members, attached hereto as Exhibit E, which will be mailed and emailed to Class Members.


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2.38 “Valid Claim” means a Claim Form submitted by a Class Member that is: (a)

submitted in accordance with the directions accompanying the Claim Form and the provisions of

the Settlement; (b) accurately, fully, and truthfully completed, and executed by a Class Member,

with all of the information requested in the Claim Form; (c) signed by the Class Member

personally or by a Person with legal authority to sign for and bind a member of the Settlement

Class, subject to the penalty of perjury; (d) returned by the Claim Deadline; and (e) determined

to be valid by the Settlement Administrator.

III. CERTIFICATION OF THE CLASS FOR SETTLEMENT PURPOSES ONLY 3.1 For purposes of settlement, Plaintiff shall ask the Court to certify the Settlement

Class under Federal Rules of Civil Procedure 23(b)(2) and (b)(3).

3.2 The Defendants agree that this Action may be certified as a class action for

settlement purposes only in accordance with the terms of this Agreement and without prejudice

to Defendants’ right to contest class certification in the event that this Agreement fails to reach

the Effective Date, or is not fully implemented in accordance with its terms.

3.3 If the Settlement is not approved or this Agreement fails to be fully implemented

or the Effective Date is not reached, (i) the Parties and status of the Action will return to the

status quo ante existing before the execution of the Settlement, as described further in Paragraph

16.14 and (ii) Defendants reserve all rights to object to any subsequent motion to certify a class

in this Action or any other lawsuit, and no representation or concession made in connection with

the Settlement or this Agreement shall be considered law of the case or an admission by

Defendants, or to have any kind of preclusive effect against Defendants or to give rise to any

form of estoppel or waiver by Defendants in this Action or any other lawsuit or proceeding.

3.4 Defendants expressly deny any and all liability and/or wrongdoing with respect to

any and all of the claims alleged in this Action and any similar lawsuits, and Defendants enter


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into this Settlement solely to compromise and resolve disputed claims. Accordingly, Defendants

maintain that any references to the alleged business practices of Defendants in this Settlement,

this Agreement, Class Notices, or the related Court hearings and processes shall raise no

inference respecting the propriety of those business practices or any other business practices of

Defendants.

IV. REQUIRED EVENTS

As soon as practicable after the execution of this Agreement, Plaintiffs shall file in this

Action this Agreement and a motion seeking entry of the Preliminary Approval Order,

substantially in the form of the attached Exhibit D, which order by its terms shall accomplish all

of the following:

4.1 Preliminarily approve the Settlement and this Agreement as fair and reasonable to

the Settlement Class;

4.2 Conditionally certify the Settlement Class, for settlement purposes only, pursuant

to Federal Rule of Civil Procedure 23(a)(1)–(4) and (b)(3);

4.3 Designate the Class Representatives as the representatives of the Settlement

Class;

4.4 Designate Class Counsel as counsel for the Settlement Class;

4.5 Approve the form, contents, and methods of notice to be given to the Settlement

Class as set forth in Section VII of this Agreement, and direct the Settlement Administrator to

provide, and cause to be provided, such notice and to file with the Court a declaration of

compliance with those notice requirements, as set forth in Paragraph 7.9 of this Agreement;

4.6 Approve the Settlement Administrator and instruct the Settlement Administrator

to perform the following functions, inter alia, in accordance with the terms of this Agreement,

the Preliminary Approval Order, and the Final Approval Order and Judgment:


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a. disseminate the Class Notice according to the approved notice plan;

b. establish the Settlement Website, which Class Members can visit to read and

obtain additional information regarding the Settlement, and through which Class

Members can submit Claim Forms. The Settlement Website shall be reviewed

and approved by Defendants (which approval shall not unreasonably be

withheld). The Settlement Website shall include the following documents and

functionality:

i. a copy of the Settlement Notice.

ii. select pleadings from the Litigation (to be agreed upon by the Parties);

iii. the Preliminary Approval Order;

iv. contact information for the Settlement Administrator and Class

Counsel;

v. a method for electronically requesting and submitting Claim Forms;

and

vi. a method for downloading and printing Claim Forms for submission

via mail.

c. establish a toll-free telephone number that Class Members can call to request that

a copy of the Class Notice and/or Claim Form be sent to them by mail or email

and obtain additional information regarding the Settlement. This shall be

accomplished before Class Notice is disseminated;

d. Compile address information for re-sending any Class Notices returned as

undeliverable.

e. process requests for Opt-Outs from the Settlement in accordance with Section IX

of this Agreement;


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f. track Objections to the Settlement in accordance with Section IX of this

Agreement; and

g. process Claim Forms in accordance with Section V of this Agreement.

4.7 To the extent necessary, stay any other proceedings affecting the certified class

pending in this Court or any other court.

4.8 Set the date, time, and location of the Final Approval Hearing, upon notice to the

Settlement Class, approximately ninety (90) days from the entry of the Preliminary Approval

Order, to consider:

a. whether the Settlement should be finally approved as fair, reasonable, and

adequate, and whether the Released Claims of the Settlement Class against the

Released Persons should be dismissed with prejudice by entry of the Final

Approval Order and Judgment;

b. whether Named Plaintiff Service Awards should be issued and the amount of

those awards;

c. whether Class Counsel should be awarded Attorneys’ Fees and Costs and the

amount of those awards; and

d. any Objections filed by Class Members;

4.9 Within ten (10) days of the filing of Plaintiffs’ motion for preliminary approval,

counsel for Defendants, with the assistance of the Settlement Administrator, will provide notice

of the Settlement to the appropriate officials pursuant to the Class Action Fairness Act of 2005,

28 U.S.C. § 1715, with the costs of such notice to be paid by CCHS.

4.10 Plaintiffs shall file their motion for Final Approval of the Settlement and their

application for Attorneys’ Fees and Costs and for Named Plaintiff Service Awards no later than

fifteen (15) days prior to the Final Approval Hearing, which is described further in Section XIII.


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V. SETTLEMENT CONSIDERATION AND PROCEDURES FOR PROVIDING BENEFITS TO SETTLEMENT CLASS MEMBERS

5.1 In exchange for the mutual promises and covenants in this Agreement, including,

without limitation, the Releases set forth in Section XII and the dismissal of the Action upon

entry of the Final Approval Order and Judgment, CCHS agrees to pay up to the Settlement

Amount.

5.2 The Settlement Amount shall be paid out for: (a) Valid Claims, (b) any award of

Attorneys’ Fees and Costs, and (c) Named Plaintiff Service Awards. In the event that the total of

(a) through (c) above exceeds the Settlement Amount, then the amounts paid for Valid Claims

shall be reduced, pro rata as set forth in Paragraph 5.4.

5.3 Settlement Benefit Available to Settlement Class Members. In consideration

of the Settlement and Releases given herein, every Class Member who timely submits a Valid

Claim shall be entitled to a Benefit up to seventy-seven percent (77%) of all premiums paid for

any Plan that have not been previously refunded. In order to qualify for a Benefit under this

Settlement, Settlement Class Members must submit a Valid Claim using the form attached as

Exhibit A. This can be done on the applicable Settlement Website or by mail by the Claim

Deadline.

5.4 In the event that the total Benefits for all Valid Claims made exceeds the value of

the Settlement Amount after deducting Settlement Costs (i.e., Named Plaintiff Service Awards

and Attorneys’ Fees and Costs, as may be approved by the Court), the Benefit to each Settlement

Class Member who submits a Valid Claim shall be a pro rata share of the net Settlement

Amount based on his or her calculated claim amount.

5.5 Valid Claims will be audited against Defendants’ records, and Claim Forms shall

include safeguards to prevent waste, fraud, and abuse, including a sworn statement attesting to

the veracity of the information provided.


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5.6 All Settlement Class Members who submit a Claim Form must sign, as part of the

Claim Form, under penalty of perjury under the laws of the United States of America: (i) that

they are a Class Member; (ii) that during the Class Period they did not knowingly enroll in one or

more warranty or home service plans after cashing or depositing a check solicitation; (iii) that

they agree to be bound by all of the terms and conditions of the settlement; and (iv) that the

information they submit in the Claim Form is true and accurate.

5.7 The Settlement Administrator will pay Benefits to Settlement Class Members

from the Settlement Amount within thirty (30) days of entry of the Effective Date. Defendants

will provide verification to Plaintiffs of such Benefits prior to distribution by the Claims

Administrator.

5.8 Settlement Class Members shall have ninety (90) days to cash their checks after

issuance. Upon the expiration of that ninety (90) day time period, any check not cashed within

the time period allotted will become void. The voiding of any such check by the passage of time

as described in this paragraph shall not serve to invalidate the Release given in Section XII

hereof by any Settlement Class Member who failed timely to negotiate his, her, or its check, or

the Final Approval Order and Judgment.

5.9 Limitations. The Benefits described in this Section will be available on a “claims

made” basis and Defendants only will pay, or cause to be paid, Valid Claims. This Agreement

does not create any vested property interest or unclaimed property rights for Settlement Class

Members who do not file Valid Claims.

VI. CLASS-WIDE EQUITABLE RELIEF & ADDITIONAL RELIEF

6.1 Class-Wide Equitable Relief. Within thirty (30) days of the Effective Date,

CCHS will notify Class Members who are current CCHS customers that they are enrolled in a

Plan and have the opportunity to discontinue the Plan if they so choose. The format and content


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of such Notice to Current Enrollees is attached as Exhibit C. The value of these notifications is

jointly estimated by Plaintiffs and CCHS at more than Three Million Dollars ($3,000,000).

6.2 Additional Relief. The Parties also agree that as a result of the Plaintiffs’ class

action, Defendants (a) stopped sending out check solicitations altogether, the value of which is

estimated by CCHS at Nine Million Five Hundred Thousand Dollars ($9,500,000), and (b) paid

One Million Six-Hundred Thirty-Two Thousand Six-Hundred Five Dollars and Forty-Eight

Cents ($1,632,605.48) in refunds to customers who never made a claim under one of the plans

(comprised of $528,975.19 in full refunds, and $1,103,630.30 in partial refunds), subject to

update at time of final approval.

VII. PROCEDURES FOR PROVIDING NOTICE

7.1 The Parties shall jointly ask the Court to approve Heffler Claims Group as the

Settlement Administrator. The Settlement Administrator shall, subject to the supervision of the

Court, administer the relief provided by this Agreement by processing Claim Forms in a rational,

responsive, cost effective, and timely manner. The Settlement Administrator shall maintain

reasonably detailed records of its activities under this Agreement. The Settlement Administrator

shall maintain all records as required by applicable law in accordance with its normal business

practices, and such records will be made available to Class Counsel, Defendants’ counsel, the

Parties, and their representatives promptly upon request.

7.2 The Settlement Administrator shall be responsible for, among other things,

providing the Class Notice, processing Claim Forms, and administering the Settlement Website,

Objection process, Opt-Out process, and the Settlement claims process described herein. The

Settlement Administrator will use adequate and customary procedures and standards to prevent

the payment of fraudulent claims including but not limited to: validating Claims against

Defendants’ records, determining the Benefit based solely upon Defendants’ business records


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and reports, using a unique Class Member identifier which will be matched to the notice list, and

screening for multiple or fraudulent claims. The Settlement Administrator shall have the right to

audit claims, and the Settlement Administrator may request additional information from Class

Members submitting claims. If any fraud is detected or reasonably suspected, the Settlement

Administrator may request further information from the Settlement Class Member and may deny

claims, subject to the ultimate oversight by the Court. The Settlement Administrator shall

approve or deny all claims, and its decision shall be final and binding.

7.3 The Settlement Administrator will create and maintain a dedicated Settlement

Website that will contain the Class Notice, FAQs, the Settlement Agreement, Claim Form, and

other pertinent litigation documents as agreed by the Parties. Using a unique Class Member

identifier contained on the Short Form Notice, Class Members will be permitted to submit claims

by mail or online and at no cost through the Settlement Website. Class Members who were

enrolled in more than one plan need only submit one Claim Form, and will receive their

applicable cash settlement benefit for each such plan.

7.4 Within ten (10) business days after Preliminary Approval, Defendants will

provide the Settlement Administrator Class Member data for notice and claims purposes in a

form that can be utilized by the Settlement Administrator for administering the Settlement. The

data shall, to the extent available, contain the following data fields: first name, last name, last

known address, address for the Plan (if different), last known email address, last known phone

number, CCHS account number (or other unique customer identifier). At the time of providing

the data, CCHS shall certify that the data represents the most current and up to date information

that Defendants have for Class Members. After receiving the data from the Defendants, the

Settlement Administrator shall use the National Change of Address System (NCOA) to update

the mailing addresses and a third-party vendor (agreed upon by the Parties) shall be used to


20 ny-1338493

search for the email addresses of those Class Members for whom Defendants do not have a last-

known email address.

7.5 No later than thirty (30) days after the Court grants Preliminary Approval, the

Settlement Administrator shall cause the Short Form Notice to be distributed to Class Members

by both mail (in the form of a postcard) and email. The Short Form Notice shall include the

Settlement Website where Claim Forms can be submitted online using the unique Class Member

identifier contained on the Short Form Notice. The Settlement Website will plainly direct Class

Members where a Claim Form can be downloaded for printing and submission via mail, and a

telephone number for Class Members to request that a paper claim form be mailed to them. The

Long Form Notice shall be posted on the Settlement Website, and Class Members shall be able

to contact the Settlement Administrator by the Settlement Website and telephone to request that a

copy be mailed to them. The Long Form Notice shall inform Class Members of the Settlement,

the monetary and non-monetary benefits, Opt-Out/Objection rights, the amount of the Named

Plaintiff Service Awards, the amount of the Attorney Fees and Costs sought by Class Counsel,

the Claims Period and related information.

7.6 A second round of notice will be provided for notices returned as undeliverable—

i.e., via skip trace for mail and email notices. In the event both mailed and emailed notice is

returned or undeliverable for a Class Member, the second notice will be made by postcard, and

updated email if available. The Settlement Administrator shall send a reminder Short Form

Notice solely by mail to all Class Members who do not file a Claim Form within the first thirty

(30) days of the Claims Period (the “Reminder Notice”). If a Class Member’s initial mailed

notice was returned undeliverable but not re-mailed (because the email did not bounce back), the

Settlement Administrator will perform a skip trace and send the Reminder Notice to the updated

address, if any, or by email if an updated mailing address is unavailable.


21 ny-1338493

7.7 Twenty-four (24) hours prior to dissemination of the Class Notice a call center

will be established that will include a voice recorded IVR that will allow Class Members to leave

voice mail messages in order to receive a return telephone call from a live operator within 48

hours.

7.8 A draft IVR voicemail message is attached hereto as Exhibit F.

7.9 No later than twenty-one (21) days prior to the Final Approval Hearing, the

Settlement Administrator shall certify to the Court compliance with the notice provisions of this

Agreement.

7.10 The Settlement Administrator shall provide weekly claims administration reports

to Defendants’ Counsel and Class Counsel during the Claims Period.

7.11 As noted in Section 6.1, within 30 days of the Effective Date, the Notice to

Current Enrollees will be sent by the Settlement Administrator in substantially the same form as

that attached as Exhibit C.

VIII. CLASS COUNSEL’S APPLICATION FOR AN AWARD OF ATTORNEYS’ FEES AND COSTS, AND NAMED PLAINTIFF SERVICE AWARDS

8.1 The Parties agree, subject to Court approval, Wittels Law, P.C. and Cowan,

Liebowitz & Latman, P.C. shall be appointed Class Counsel, without prejudice to Defendants’

right to contest the appointment in the event that this Agreement is not fully implemented in

accordance with its terms. If the Settlement is not approved or this Agreement fails to be

implemented fully, Defendants reserve all rights to object to any subsequent motion to appoint

class counsel in this or any other actions.

8.2 Class Counsel will submit to the Court an application seeking an award of

Attorneys’ Fees and Costs of up to one-third (33.33%) of the monetary value obtained for class

members (i.e. 77% of the premiums collected = $24,824,622 (subject to update at time of final

approval) + the $1,632,605.48 previously refunded to Class members as a result of Plaintiffs’


22 ny-1338493

lawsuit as updated at time of final approval (plus litigation costs and expenses not to exceed Six

Hundred Thousand Dollars $600,000). Class Counsel also will submit to the Court an application

seeking leave to pay the Named Plaintiff Service Awards (ranging from $1000 to $20,000) out of

$310,000 set aside from the Settlement Amount as compensation for his/her efforts in bringing

their actions and achieving the benefits of the Settlement on behalf of the Settlement Class.

Sums paid for Class Counsel’s Attorneys’ Fees and Costs and Named Plaintiff Service Awards

will be paid out of the total Settlement Amount, and settlement administration costs estimated at

$300,000 (as updated) shall be paid separately by Defendants in addition to the maximum

Settlement Amount.

8.3 Court approval of the Attorneys’ Fees and Costs award and/or the Named Plaintiff

Service Awards will not be a condition of the effectiveness of the Settlement. If the Court

denies, in whole or part, Class Counsel’s application for an award of Attorneys’ Fees and Costs

or the Named Plaintiff Service Awards, the remainder of the terms of this Agreement shall

remain in effect. In addition, no interest will accrue on such amounts at any time.

8.4 Defendants agree that CCHS will pay the amounts approved by the Court for

Class Counsel’s Attorneys’ Fees and Costs and Named Plaintiff Service Awards at within fifteen

(15) business days after the Effective Date, which payments are counted as part of and against

the Settlement Amount.

8.5 Class Counsel shall provide Defendants with all necessary accounting and tax

information, including W-9 forms, with reasonable advance notice to allow Defendants to make

the Attorneys’ Fees and Costs and Named Plaintiff Service Award payments as set forth above.

8.6 Notwithstanding anything contained in this Agreement that might be construed to

the contrary, it is understood by the Parties and Class Counsel that Attorneys’ Fees and Costs,

Named Plaintiff Service Award payments, and settlement administration costs, in the amounts


23 ny-1338493

awarded by the Court, are the only such fees, costs, and expenses that Defendants will pay in

connection with this Settlement. With the exception of its own attorneys’ fees, costs, and

expenses, Defendants shall not be liable for any other attorneys’ fees, costs, or expenses except

as previously provided in this Agreement.

IX. OPT-OUTS AND OBJECTIONS

Subject to an Order of the Court so providing, the Parties agree that:

9.1 Opt-Outs.

a. Any Class Member, other than any Class Representative, may elect to be

excluded from the Settlement and Settlement Class by Opting-Out of the Settlement Class. Any

Class Member who desires to be excluded from the Settlement Class must give written notice of

the election to Opt-Out on or before the Opt Out Deadline specified in the Preliminary Approval

Order, mailed to the Settlement Administrator. Opt-Out requests must: (i) be signed by the Class

Member who is requesting exclusion; (ii) include the full name, address, phone number(s), and

email(s) of the Class Member requesting exclusion; and (iii) include the following statement:

“I/We request to be excluded from the Settlement Class and Settlement in the Delgado Action.”

No Opt-Out request will be valid unless all of the information described above is included. No

Class Member, or any person acting on behalf of or in concert or participation with that Class

Member, may exclude any other Class Member from a Settlement Class, and no Class Member

shall be deemed opted-out of a Settlement Class through any purported “mass” or “class” opt-

outs. So-called “mass” or “class” opt-outs shall not be allowed and shall be deemed invalid.

b. The last date for Class Members to Opt-Out of a Settlement Class and Settlement

will, subject to Court approval, be on the Opt-Out Deadline contained in the Preliminary

Approval Order. Class Members who timely Opt-Out of a Settlement Class and Settlement will


24 ny-1338493

not be bound by the terms of this Agreement, including any releases contained herein, nor will

they be entitled to receive any benefits from the Settlement.

c. In the event that ten percent (10%) or more of a Settlement Class Opts-Out,

Defendants shall have the option to elect to terminate this Agreement pursuant to Paragraph 16.1,

in which circumstance the Settlement will become null and void and the Parties and status of the

Action will return to the status quo ante as described in Paragraph 16.14.

d. The Settlement Administrator shall provide the Parties weekly written updates

identifying the number, and identity of Class Members who have elected to Opt-Out from the

Settlement Class. The final update shall be provided within ten (10) days after the Opt-Out

Deadline, and Defendants shall then have ten (10) days to notify Plaintiffs if they elect to

terminate this Agreement pursuant to Subsection (d) of Paragraph 16.1.

e. The Class Representatives affirmatively support this Settlement and agree not to

Opt-Out of this Settlement. None of the Class Representatives, Class Counsel, or Defendants or

their counsel shall in any way encourage any Class Member to Opt-Out, file an Objection, or

discourage any Class Member from participating in this Settlement.


25 ny-1338493

9.2 Objections. Any Class Member, on his, her, or its own, or through an attorney

hired at his, her, or its own expense, may object to the terms of the Settlement, Class Counsel’s

motion for an award of Attorneys’ Fees and Costs and/or the Named Plaintiff Service Awards.

Any such Objection must be served on Class Counsel, Defendants’ counsel, and the Settlement

Administrator. To be effective, any such Objection must be in writing and include the contents

described below, and must be served by the Objection Deadline. Any Objections not raised

properly and timely will be waived. To be effective, any Objection must contain all the

following information:

a. a reference at the beginning to Delgado v. Ocwen Loan Servicing, LLC., No. 1:13-

cv-04427-NGG-SLT (Eastern District of New York),

b. the objector’s full name, address, telephone number, and email address;

c. the Objection must state whether it applies only to the objector, to a specific

subset of the class, or to the entire class, and also state with specificity the

grounds for the Objection;

d. copies of any papers, briefs, or other documents upon which the Objection is

based;

e. a list of all persons who will be called to testify in support of the Objection;

f. a statement of whether the objector intends to appear at the Final Approval

Hearing. If the objector intends to appear at the Final Approval Hearing through

counsel, the Objection must also state the identity of all attorneys representing the

objector who will appear at the Final Approval Hearing, and all such attorneys

representing the objector must enter an appearance concurrently with serving the

Objection, whether or not the objector’s counsel will appear at the Final Approval

Hearing or whether or not admitted in New York;


26 ny-1338493

g. a statement of his, her, or its membership in the Settlement Class, including all

information required by the Claim Form;

h. a detailed list of any other Objections and any orders pertaining to the prior

objections pertaining to the objector or his or her Counsel submitted or entered in

any court, whether state or federal, in the United States in the previous five (5)

years. If the Settlement Class Member or his, her, or its counsel has not objected

to any other class action settlement in any court in the United States in the

previous five (5) years, he, she, or it shall affirmatively state so in the written

materials provided in connection with the Objection to this Settlement.

Any Class Member who fails to timely file and serve a written Objection containing all of

the information listed above in the previous paragraphs, including notice of his, her, or its intent

to appear at the Final Approval Hearing, shall not be permitted to object to the Settlement and

shall be foreclosed from seeking any review of the Settlement or the terms of the Settlement

Agreement by any means, including but not limited to an appeal. Further, any Class Member

who submits a timely written Objection shall consent to deposition by Class Counsel and/or

Defendants’ counsel prior to the Final Approval Hearing.

X. COSTS OF NOTICE AND ADMINISTRATION

Defendants shall be responsible to pay the Administration Expenses. Heffler Claims

Group has been selected as the Settlement Administrator upon mutual agreement of the Parties.

Efforts have been made to minimize the costs of notice and administration, including all costs

relating to the Settlement by and through Heffler Claims Group.

XI. PROCEDURES FOR SETTLEMENT APPROVAL

11.1 This Agreement and the Settlement embodied herein are subject to Final

Approval by the Court. If the Settlement is approved, the Court will enter a judgment dismissing


27 ny-1338493

the claims against Defendants with prejudice. The Parties waive any right to appeal or

collaterally attack a Final Approval Order and Judgment entered by the Court.

11.2 If this Agreement or any part of it is materially modified by the Court or is

materially modified upon appeal or remand, any of the Parties may terminate this Agreement

pursuant to Paragraph 16.1. If no Party timely elects to terminate then the Parties shall remain

bound to the Settlement as so modified. For purposes of this paragraph, a “material

modification” is one that significantly affects the rights or obligations of one or more of the

Parties. Without limiting the foregoing and by way of illustration only, material modifications

include but are not limited to: (1) any change to the scope of the Released Claims set forth in this

Settlement Agreement; (2) any material change to the Final Approval Order and Judgment,

which limits or reduces any of the protections afforded to Defendants; and (3) any increase in the

cost of the settlement to be borne by Defendants to be determined at the sole discretion of

Defendants; and/or (4) any change to the benefits, Class Notices, Claim Form, and/or claim

process.

11.3 No order or action of the Court pertaining to attorneys’ fees or expenses shall be

considered to constitute a material modification so long as such order, action, or modification

does not increase the cost of settlement to be borne by Defendants, and does not require that

Defendants do anything not specifically set forth herein, or is one that significantly affects the

rights or obligations of one or more of the Parties. Similarly, no order, action, or modification of

the Court pertaining to the Named Plaintiff Service Awards shall be considered to constitute a

material modification so long as such order, action, or modification does not increase the cost of

Settlement to be borne by Defendants, and does not require that Defendants do anything not

specifically set forth herein.


28 ny-1338493

11.4 By signing this Agreement, CCHS’s representative affirms that CCHS’s Board of

Advisors has approved this Agreement. Any material modifications to this Agreement, including

material modifications made by the Court, similarly will be subject to approval by CCHS’s

Board of Advisors.

XII. RELEASES

12.1 As of the Effective Date, Plaintiffs and all Settlement Class Members (who do not

timely opt-out of the Settlement) (collectively, “Releasors”), and each of their respective,

executors, representatives, heirs, successors, bankruptcy trustees, guardians, wards, agents and

assigns, and all those who claim through them or who assert claims on their behalf shall

automatically be deemed to have fully and irrevocably released and forever discharged

Defendants and each of their present and former parents, subsidiaries, divisions, affiliates,

predecessors, successors and assigns, and the present and former directors, officers, employees,

agents, insurers, shareholders, attorneys, advisors, consultants, representatives, partners, joint

venturers, independent contractors, wholesalers, resellers, distributors, retailers, predecessors,

successors, and assigns of each of them (collectively, “Releasees”), of and from any claim, right,

demand, charge, complaint, action, cause of action, obligation, or liability for any type of relief

and statutory or punitive damages predicated on any claim and for actual or statutory damages,

punitive damages, restitution or other monetary relief of any and every kind, including, without

limitation, those based on any federal, state, or local law, statute, regulation, or common law,

including all claims for declaratory or injunctive relief, whether known or unknown, suspected or

unsuspected, under the law of any jurisdiction, which the Class Representative or any Settlement

Class Member ever had, now has or may have in the future resulting from, arising out of or in

any way, directly or indirectly, relating to (a) any claims that were or could have been alleged in

the Complaint or the Action; or (b) any conduct prior to the date of final settlement approval that


29 ny-1338493

was or could have been alleged in the Complaint or the Action. For the avoidance of doubt, the

Released Claims include, and each Releasor expressly waives and fully, finally and forever

settles any claims it may have against Releasees or any of them under California Business and

Professions Code § 17200 et seq. and similar state laws, which claims are included in and

expressly incorporated into this Paragraph.

12.2 Plaintiffs and each Settlement Class Member waive and release any and all

provisions, rights, and benefits conferred either (a) by section 1542 of the California Civil Code,

or (b) by any law of any state or territory of the United States, or principle of common law,

which is similar, comparable, or equivalent to section 1542 of the California Civil Code, with

respect to the claims released pursuant to Paragraph 12.1 hereto. Section 1542 of the California

Civil Code reads:

Section 1542. General Release, extent. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.

Plaintiffs and each Settlement Class Member may hereafter discover facts other than or different

from those that he or she knows or believes to be true with respect to the subject matter of the

claims released pursuant to the terms of Paragraph 12.1 hereof, but each of those individuals

expressly agrees that, upon entry of the Final Judgment, he or she shall have waived and fully,

finally, and forever settled and released any known or unknown, suspected or unsuspected,

asserted or unasserted, contingent or non-contingent claim with respect to the claims released

pursuant to Paragraph 12.1 hereof, whether or not concealed or hidden, without regard to

subsequent discovery or existence of such different or additional facts.

12.3 Plaintiffs or any Settlement Class Member may hereafter discover facts other than

or different from those that he or she knows or believes to be true with respect to the subject

matter of the claims released, or the law applicable to such claims may change. Nonetheless,


30 ny-1338493

each of those individuals expressly agrees that, as of the Effective Date, he or she shall have

automatically and irrevocably waived and fully, finally and forever settled and released any

known or unknown, suspected or unsuspected, asserted or unasserted, liquidated or unliquidated,

contingent or non-contingent claims with respect to all of the matters and conduct described in or

subsumed by this Paragraph and Paragraph 12.1. Further, each of those individuals agrees and

acknowledges that he or she shall be bound by this Agreement, including by the releases

contained in this Paragraph and in Paragraph 12.1, and that all of their claims in the Action shall

be dismissed with prejudice and released, whether or not such claims are concealed or hidden;

without regard to subsequent discovery of different or additional facts and subsequent changes in

the law; and even if he or she never receives actual notice of the Settlement or never receives a

distribution of funds or credits from the Settlement.

XIII. FINAL JUDGMENT AND SETTLEMENT APPROVAL

13.1 At the Final Approval Hearing, the Court will consider Plaintiffs’ motion for

Final Approval of the Settlement, and Class Counsel’s application for Attorneys’ Fees and Costs

and for Named Plaintiff Service Awards.

13.2 The Court at the Final Approval Hearing will determine whether to enter the Final

Approval Order and Judgment granting final approval of the Settlement, and whether to approve

Class Counsel’s request for Attorneys’ Fees and Costs and Named Plaintiff Service Awards.

The proposed Final Approval Order and Judgment that will be attached to the motion shall be in

a form agreed upon by Class Counsel and Defendants. Such Final Approval Order and Judgment

shall, among other things:

a. Determine that the Settlement is fair, reasonable and adequate;

b. Finally certify the Settlement Class for settlement purposes only;

c. Determine that the Class Notice provided satisfies due process requirements;


31 ny-1338493

d. Authorize all payments provided for in this Agreement;

e. Dismiss the Action with prejudice and without costs;

f. Bar and enjoin Plaintiff and all Settlement Class Members from asserting any of

the Released Claims, as set forth in Section XII, including during any appeal from

the Final Approval Order;

g. Release Defendants and the Released Parties from the Released Claims, as set

forth in Section XII; and

h. Reserve the Court’s continuing and exclusive jurisdiction over the Parties to this

Agreement, including Plaintiffs, Ocwen, CCHS, Finn, and all Settlement Class

Members, to administer, supervise, construe and enforce this Agreement in

accordance with its terms.

XIV. REPRESENTATIONS AND WARRANTIES

Each Party represents and warrants to, and agrees with, the other Party as follows:

14.1 Each Party has had the opportunity to receive, and has received, independent legal

advice from his, her, or its attorneys regarding the advisability of making the Settlement, the

advisability of executing this Agreement, and the legal and income tax consequences of this

Agreement, and fully understands and accepts the terms of this Agreement.

14.2 Defendants represent and warrant: (a) that they have the requisite corporate power

and authority to execute, deliver, and perform the Agreement, and to consummate the

transactions contemplated hereby; (b) that the execution, delivery, and performance of the

Agreement, and the consummation by it of the actions contemplated herein have been duly

authorized by necessary corporate action on the part of the Defendants; and (c) that the

Agreement has been duly and validly executed and delivered by Defendants and constitutes its

legal, valid, and binding obligation.


32 ny-1338493

14.3 Lead Plaintiffs Delgado and Shepherd represent and warrant that they are entering

into the Agreement on behalf of themselves individually and as proposed representatives of the

potential Settlement Class Members, of their own free will and without the receipt of any

consideration other than what is provided in the Agreement or disclosed to, and authorized by,

the Court. Lead Plaintiffs represent and warrant that they have reviewed the terms of the

Agreement in consultation with Class Counsel and believe them to be fair and reasonable, and

covenants that they will not file an Opt-Out request from the Settlement Class or object to the

Agreement.

14.4 Plaintiffs represent and warrant that no portion of any claim, right, demand,

action, or cause of action against any of the Released Persons that Plaintiffs have, may have

arising out of this Action, or could have asserted in this Action, and no portion of any recovery

or settlement to which Plaintiffs may be entitled, has been assigned, transferred, or conveyed by

or for Plaintiffs in any manner; and no Person other than Plaintiffs has any legal or equitable

interest in the claims, demands, actions, or causes of action referred to in this Agreement as

those of Plaintiffs themselves.

14.5 No Party relies or has relied on any statement, representation, omission,

inducement, or promise of another Party (or any officer, agent, employee, representative, or

attorney for any other party) in executing this Agreement, or entering the Settlement provided for

herein, except as expressly stated in this Agreement. Class Counsel has expressly relied on

Defendants’ sworn interrogatory responses regarding the amounts Defendants collected and

refunded in connection with the Plans.

XV. THE PARTIES POSITIONS ON THE ACTION AND SETTLEMENT

15.1 The Parties understand and acknowledge that this Agreement constitutes a

compromise and settlement of disputed claims. No action taken by the Parties either previously


33 ny-1338493

or in connection with the negotiations or proceedings connected with this Agreement shall be

deemed or construed to be an admission of the truth or falsity of any claims or defenses

heretofore made, or an acknowledgment or admission by any party of any fault, liability or

wrongdoing of any kind whatsoever.

15.2 Class Counsel and Plaintiffs believe that the claims asserted in the Action have

merit, and they have examined and considered the benefits to be obtained under the proposed

Settlement set forth in this Agreement, the risks associated with the continued prosecution of this

complex, costly and time-consuming litigation, and the likelihood of success on the merits of the

Action. Class Counsel have fully investigated the facts and law relevant to the merits of the

claims, have conducted extensive formal and informal discovery, and have conducted

independent investigation of the challenged practices. Class Counsel and Plaintiffs have

concluded that the proposed Settlement set forth in this Agreement is fair, reasonable, adequate,

and in the best interests of the Settlement Class.

15.3 The Defendants dispute the claims alleged in the Action and do not by this

Agreement or otherwise admit any liability or wrongdoing of any kind. The Defendants have

agreed to enter into this Agreement to avoid the further expense, inconvenience and distraction

of burdensome and protracted litigation, and to be completely free of any further claims that

were asserted or could have been asserted in the Action.

15.4 Neither the Settlement, nor any act performed or document executed pursuant to

or in furtherance of the Settlement: (a) is or may be deemed to be, or may be used as, an

admission of, or evidence of, the validity of any claim made by the Plaintiffs or Settlement Class

Members, or of any wrongdoing or liability of the Released Parties; or (b) is or may be deemed

to be, or may be used as, an admission of, or evidence of, any fault or omission of any of the


34 ny-1338493

Released Parties, in the Action or in any proceeding in any court, administrative agency or other

tribunal.

15.5 In addition to any other defenses Defendants may have at law, in equity, or

otherwise, to the extent permitted by law, this Agreement may be pleaded as a full and complete

defense to, and may be used as the basis for an injunction against, any action, suit or other

proceeding that may be instituted, prosecuted or attempted in breach of this Agreement or the

Releases contained herein.

XVI. MISCELLANEOUS PROVISIONS

16.1 Termination of Agreement. This Agreement may be terminated at the election

of either Party, by written notice: (a) if the Court fails to approve the Agreement verbatim; (b) in

the event of any proposed material modification of this Agreement as a condition to approval of

the Settlement; (c) prior to approval of this Agreement by the Court, upon the mutual agreement

of the Parties by and through their respective counsel; or (d) by Defendants, at its sole option, in

the event that ten percent (10%) or more of a Settlement Class timely elects to Opt-Out of the

Class and Settlement.

16.2 Entire Agreement. This Agreement, together with the Exhibits hereto,

constitutes the entire agreement between the Parties with respect to the subject matter of the

Settlement and supersedes all prior negotiations, communications, memoranda, and agreements

between the Parties. Neither Plaintiffs nor Defendants are entering into this Agreement in

reliance upon any representations, warranties, or inducements other than those contained in this

Agreement.

16.3 Change of Time Periods. The time periods and/or dates described in this

Agreement with respect to the giving of notices and hearings are subject to approval and change

by the Court or by the written agreement of Class Counsel and Defendants’ counsel, without


35 ny-1338493

notice to Class Members except that the Settlement Administrator shall ensure that such dates are

posted on the Settlement Website.

16.4 Extension of Time. The Parties reserve the right, by agreement and subject to the

Court’s approval, to grant any reasonable extension of time that might be needed to carry out any

of the provisions of this Agreement without formally amending this Agreement.

16.5 Plaintiffs’ Authority. Class Counsel represent and warrant that they are

authorized to take all appropriate actions required or permitted to be taken by or on behalf of the

Plaintiffs and, subsequent to an appropriate Court Order, the Settlement Class in order to

effectuate the terms of this Agreement, and also are authorized to enter into appropriate

modifications or amendments to this Agreement on behalf of the Plaintiffs and, subsequent to an

appropriate Court Order, the Class Members.

16.6 Counterparts. This Agreement may be executed in one or more counterparts, all

of which together shall be deemed to be one and the same instrument. The Parties agree that a

copy of the executed counterparts may be filed with the Court in connection with the motion to

preliminarily approve the Settlement, either in portable document format or some other suitable

electronic form, as an exhibit to Plaintiffs’ motion for preliminary approval without the need to

collate and file a copy with original signatures.

16.7 Cooperation. The Parties shall cooperate with the Settlement Administrator to

the extent reasonably necessary to assist and facilitate the Settlement Administrator in carrying

out its duties and responsibilities.

16.8 Construing the Agreement. This Agreement shall not be construed more strictly

against one Party than another merely by virtue of the fact that it may have been initially drafted

by counsel for only one of the Parties. It is recognized that this Agreement is the result of arm’s-

length negotiations between the Parties and it is acknowledged that all Parties have contributed


36 ny-1338493

substantially to the preparation of this Agreement, accordingly, the doctrine of contra

proferentum shall not apply in construing this Agreement, nor shall any other such similar

doctrine apply.

16.9 Choice of Law. This Agreement shall be governed by and interpreted in

accordance with the substantive common law of the State of New York, exclusive of choice of

law principles.

16.10 Jurisdiction. The Parties submit to the exclusive jurisdiction of the United States

District Court for the Eastern District of New York which shall retain jurisdiction over the

Action, the Settlement Administrator, the Preliminary Settlement Agreement, the Final Order

and Judgment, the Class Members, the Plaintiffs and Defendants for the purpose of enforcing

this Agreement or implementing any part of the Settlement embodied in this Agreement.

16.11 Headings. The captions and headings employed in this Agreement are for

convenience only, are not a part of the Agreement, and shall not be used in construing or

interpreting the Agreement.

16.12 Media and Contact of Class Members. If any one of the Parties seeks to issue

or otherwise provide to the public, including any media or press, any announcement, press

release, or other statement relating to the Settlement or the Action (including previously-issued

statements on any Party-owned website), the Parties will prepare it jointly and to the satisfaction

of the other, approved in advance in writing, and it shall be the only communication either Party

or their counsel shall make regarding the Settlement or the Action, other than in pleadings

submitted to the Court relating the Settlement, or in connection with government inquiries,

securities filings, or other litigation matters, or as may be necessary to prepare tax documents.

Notwithstanding the foregoing, until the parties jointly negotiate what content shall remain on

Class Counsel’s website, the website shall remain as is. Except as noted herein, and in order to


37 ny-1338493

ensure consistent and accurate communications regarding the terms of the Settlement, the Notice

shall constitute the only communication with Class Members (other than the Class

Representatives) regarding the Settlement prior to Final Approval Hearing. Notwithstanding,

Class Counsel can answer any inquiries initiated by Class Members, but Class Counsel will not

initiate contact with any Class Members.

16.13 Evidentiary Preclusion. The Parties agree that, to the fullest extent permitted by

law, neither this Agreement nor the Settlement, nor any act performed or document executed

pursuant to or in furtherance of this Agreement or the Settlement: (a) is or may be deemed to be

or may be used as an admission of, or evidence of, the validity of any claim or of any

wrongdoing or liability of the Released Persons; or (b) is or may be deemed to be or may be used

as an admission of, or evidence of, any fault or omission of any Released Party or the

appropriateness of class certification in any civil, criminal, or administrative proceeding in any

court, administrative agency, or other tribunal. In addition, any failure of the Court to approve

the Settlement and/or any objections or interventions may not be used as evidence in the Action

or any other proceeding for any purpose whatsoever. However, the Released Persons may file

the Agreement and/or the Final Approval Order and Judgment in any action or proceeding that

may be brought against them in order to support a defense or counterclaim based on principles of

res judicata, collateral estoppel, release, good faith settlement, judgment bar or reduction or any

other theory of claim preclusion or issue preclusion, or similar defense or counterclaim.

16.14 Effect of Non-Approval. In the event that this Agreement is not approved by the

Court in substantially its present form, any Objection to the Settlement is sustained by the Court,

or the Settlement does not become final for any reason including Termination pursuant to

Paragraph 16.1 above, the terms and provisions of this Agreement shall have no further force and

effect with respect to the Parties or the Class Members, and shall not be used in this Action or in


38 ny-1338493

any other action or proceeding for any purpose, and any order or judgment entered by the Court

in accordance with the terms of this Agreement shall be treated as vacated, nunc pro tunc. In

such event, this Agreement and all negotiations, proceedings, documents prepared, and

statements made in connection with this Agreement shall be without prejudice to any Party or

Class Member; shall not be admissible or offered into evidence in any action or proceeding; shall

not be deemed, asserted or construed to be an admission or confession by any Party or any other

Person or entity of any fact, matter, or proposition of law; and shall not be used or asserted in

any other manner or for any purpose, and all Parties and Settlement Class Members shall stand in

the same positions as if this Agreement and Settlement had not been negotiated, made, or

submitted to the Court and any related orders had not been entered, preserving all of their

respective claims and defenses.

16.15 Stay Pending Court Approval. Class Counsel and Defendants’ counsel agree to

stay all proceedings in the Action, other than those proceedings necessary to carry out or enforce

the terms and conditions of the Settlement, until the Effective Date of the Settlement has

occurred. The Parties also agree to use their best efforts to seek the stay and dismissal of, and to

oppose entry of any interim or final relief in favor of any Class Member in any other proceedings

against any of the Released Persons, which challenges the Settlement or otherwise asserts or

involves, directly or indirectly, a Released Claim.

16.16 Notices. Whenever this Agreement requires or contemplates that one Party shall

or may give notice to the other, notice shall be provided in writing by email to:

If to Plaintiffs or Class Counsel:

WITTELS LAW, P.C. Steven L. Wittels Tiasha Palikovic J. Burkett McInturff 18 Half Mile Road Armonk, New York 10504

COWAN, LIEBOWITZ & LATMAN, P.C. J. Christopher Jensen 114 West 47th Street New York, NY 10036 212-790-9200 Email: [email protected]


39 ny-1338493

Email: [email protected] [email protected] [email protected]

If to Defendant or Defendants’ Counsel:

MORRISON & FOERSTER LLP David J. Fioccola Jessica Kaufman Robert J. Baehr 250 West 55th Street New York, NY 10019-9601 Email: [email protected]

[email protected] [email protected]

BUCKLEY LLP Matthew P. Previn 1133 Avenue of the Americas, Suite 3100 New York, New York 10036-6710 Email: [email protected]

16.17 Good Faith. The Parties agree that they will act in good faith and will not engage

in any conduct that will or may frustrate the purpose of this Agreement. To that end, the Parties

further agree to implement the terms of this Agreement in good faith and to use good faith in

resolving any disputes that may arise in the implementation of the terms of this Settlement. The

Parties further agree, subject to Court approval as needed, to reasonable extensions of time to

carry out any of the provisions of the Agreement.

16.18 Protective Orders. All orders, settlement agreements and designations regarding

the confidentiality of documents and information (“Protective Orders”) remain in effect, and all

Parties and counsel remain bound to comply with the Protective Orders, including the provisions

to certify the destruction of “Confidential” documents.

16.19 Arms-Length Negotiations. The determination of the terms and conditions

contained herein and the drafting of the provisions of this Agreement has been by mutual

understanding after negotiation, with consideration by, and participation of, the Parties hereto

and their counsel.

16.20 Waiver. The waiver by one Party of any provision or breach of the Agreement

shall not be deemed a waiver of any other provision or breach of the Agreement.


40 ny-1338493

16.21 Exhibits. All Exhibits to this Agreement are material and integral parts hereof,

and are incorporated by reference as if fully rewritten herein.

16.23 Support From The Parties. After a full investigation, discovery and arms-

length negotiations, the Parties and their counsel agree that they: (a) have independently

determined that this Settlement is in the best interest of the Settlement Class; and (b) shall

support motions for entry of the Preliminary Approval Order and Final Approval Order and

Judgment.

16.24 Costs. Except as otherwise provided in this Agreement, each Party shall bear its

own costs and expenses.

16.25 Variance. In the event of any variance between the terms of this Agreement and

any of the Exhibits hereto, the terms of this Agreement shall control and supersede the Exhibits.

16.26 Taxes. No opinion concerning the tax consequences of the Agreement to any

Settlement Class Member is given or will be given by Released Persons or Class Counsel; nor is

any Party or their counsel providing any representation or guarantee respecting the tax

consequences of the Agreement as to any Settlement Class Member. Each Settlement Class

Member is responsible for his, her, or its tax reporting and other obligations respecting the

Agreement, if any.

16.27 Time Periods. All time periods set forth herein shall be computed in calendar

days, unless otherwise expressly stated. In computing any period of time prescribed or allowed

by this Agreement or by order of the Court, the day of the act, event or default from which the

designated period of time begins to run shall not be included. The last day of the period so

computed shall be included, unless it is a Saturday, a Sunday, or a legal holiday, or, when the act

to be done is the filing of a paper in Court, a day in which weather or other conditions have made


41 ny-1338493

the Office of the Clerk or the Court inaccessible, in which event the period shall run until the end

of the next day that is not one of the aforementioned days.

16.28 Effectiveness, Amendments, and Binding Nature. This Agreement may be

amended only in writing signed by the Parties and approved by the Court. Except as otherwise

stated above, each Party, expressly accepts and assumes the risk that, if facts or laws pertinent to

matters covered by this Agreement are hereafter found to be other than as now believed or

assumed by that party to be true or applicable, this Agreement shall nevertheless remain

effective.

This Agreement is binding on, and shall inure to the benefit of, Plaintiffs, Settlement

Class Members, and Defendants, and each of their respective agents, employees, representatives,

officers, directors, parents, subsidiaries, assigns, executors, administrators, heirs, insurers, and

successors in interest in accordance with its terms. All Released Persons other than Defendants,

which are Parties, are intended to be third-party beneficiaries of this Agreement.

(Signature pages follow)


42 ny-1338493

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement, as of the

date and year last written below.

Margarita Delgado, Individually and on behalf of the Settlement Class

Date

William Sheppard, Individually and on behalf of the Settlement Class

Date

Class Counsel

Date

Ocwen Loan Servicing, LLC

Date

Cross Country Home Services, LLC

Date

Sandra Finn

Date


YOU MUST RETURN THE CLAIM FORM TO RECEIVE PAYMENT Claim Form Page 1 of 2

CLAIM SUBMISSION INSTRUCTIONS

You Must Submit a Claim Form to Receive a Cash Benefit from this Class Action Settlement

TO BE ELIGIBLE TO RECEIVE A PAYMENT, YOU MUST SUBMIT YOUR CLAIM FORM ONLINE OR MAIL A HARD COPY CLAIM FORM

CLAIM DEADLINE: [XXX XX, 2019]

CLAIM FORMS FILED ONLINE MUST BE SUBMITTED BY <<DATE>> AT 11:59PM. CLAIM FORMS SUBMITTED BY MAIL MUST BE POSTMARKED TO THE

SETTLEMENT ADMINISTRATOR NO LATER THAN <<DATE>>.

Instructions:

Please carefully read the full Class Notice provided with this Claim Form as well as the Settlement Agreement (available at [www.xxxxxxx.com]) before completing this Claim Form.

TO FILE ONLINE: File your Claim Form online at [www.xxxxxxx.com] using your CLAIMANT CODE

-OR- TO FILE BY MAIL: If you want to submit a paper Claim Form by mail, you can print a copy available online at [www.xxxxxxx.com], or call [XXX-XXX-XXXX] and ask that a paper Claim Form be mailed to you. You can then complete the hard copy Claim Form and mail it to:

HOME WARRANTY – CHECK MARKETING SETTLEMENT c/o [XXXX XXXXXXXX], Settlement Administrator P.O. Box [XXXX ] [City], [ST] [XXXXX-XXXX]

You must include your CLAIMANT CODE on the Claim Form. This code is in bold font on the postcard and /or email you received. If you can’t locate your CLAIMANT CODE or misplaced it, contact the Settlement Administrator by clicking “Contact” on the Settlement Website at [www.xxxxxxx.com] or call [XXX-XXX-XXXX].

If you received more than one notice by mail and email, you only need to submit one Claim Form to get a refund.

Your Claim will not be processed if your Claim Form has not been signed and dated.

Make a copy of the completed Claim Form for your records.

If you still have questions, go to the Settlement Website at [www.xxxxxxx.com] and click FAQ, or call the Settlement Administrator at (800) XXX-XXXX.


YOU MUST RETURN THIS PAGE TO RECEIVE PAYMENT Claim Form Page 2 of 2

Your claim must be filed online or postmarked by

[XXXX, XX], 2019

CLAIM FORM Delgado et al. v. Ocwen Loan Servicing, LLC et al.

United States District Court for the Eastern District of New York

Case No. 13 Civ. 4427 (NGG) (SLT) You must submit a claim form to receive any

payment.

PART 1: CLAIMANT INFORMATION

a. Name (please print):

b. Your Current Mailing Address:

c. CLAIMANT CODE: ______________________ (located in bold font on the postcard and/or email you received. If you can’t locate your CLAIMANT CODE or misplaced it, contact the Settlement Administrator by clicking “Contact” on the Settlement Website at [www.xxxxxxx.com] or call [XXX-XXX-XXXX].

PART 2: SIGNATURE

I wish to receive a payment from the class action settlement in Delgado et al. v. Ocwen Loan Servicing, LLC et al., Case No. 13 Civ. 4427 (NGG) (SLT). I agree to be bound by all of the terms and conditions of the settlement, and declare under penalty of perjury under the laws of the United States of America that the information I supplied above is true and accurate, and that, between August 6, 2009 and December 31, 2013, I did not knowingly enroll in any warranty or home service plans from Cross Country Home Services by cashing or depositing a solicitation check.

____________________________________ _______________

Signature Date

___________________________ ____________________________ Last First

____________________________________________________ Street

_____________________ ______________________ ______________________ City State Zip Code


NOTICE OF CLASS ACTION SETTLEMENT

QUESTIONS? CALL XXX-XXX-XXXX

A federal Court authorized sending this Notice. It is not a solicitation from a lawyer. Contact the Settlement Administrator or Class Counsel Wittels Law listed below if you have any questions after reading this notice.

Do not contact the Court with questions.

This Notice is to inform you of a proposed settlement of a class action lawsuit pending against Defendants Ocwen Loan Servicing and Cross Country Home Services, Inc.

As discussed in further detail below, the Settlement provides up to $24,824,622 (as updated at time of final court approval) from which payments will be made to current and former Ocwen, GMAC, or Homeward Residential mortgage customers who cashed or deposited a small-dollar check, and who were subsequently enrolled in home warranty or service plans sold by Cross Country Home Services, Inc. (“CCHS”). An example of what the check solicitation looked like is reproduced below.

Defendants’ records show that you may have paid for one (or more) of these plans through your mortgage statement, but never used any of the plans or received a full refund. By submitting a Valid Claim Form by XXXX, XX, 2019, you can receive a refund of up to 77% of the premium payments you made for the plan. Please read this Notice carefully, as your legal rights may be affected whether or not you respond. All capitalized terms used in this Notice are defined in the Settlement Agreement, available at www.xxxxxxxxxxxx.com.

As a current or former Ocwen, GMAC, or Homeward Residential customer who was enrolled in one or more warranty or home

service plans after cashing or depositing a small-dollar check, you can receive a cash payment from a class action settlement. Class Members are entitled to a Benefit of up to 77% of the premiums

they paid subject to validation and other adjustments by the Settlement Administrator.


QUESTIONS?CALL800-XXX-XXXX2

YOUR RIGHTS AND OPTIONS IN THIS SETTLEMENT:

SUBMIT A CLAIM FORM

This is the only way to receive a Benefit. The Claim Form must be received by the Settlement Administrator by [DATE]. You can submit a Claim Form online at www.xxxxx.com. If you want to submit a paper Claim Form by mail, you can print a copy online at www.xxxxx.com, or call XXX-XXX-XXXX and ask that a paper Claim Form be mailed to you.

OPT-OUT

Receive no Benefit. If you ask to Opt-Out, you will not receive any Benefit from this Settlement. By excluding yourself, you can bring a separate action against Ocwen and/or CCHS at your own expense for the same legal Claims in this lawsuit if your Claims are still timely. The deadline to Opt-Out is XXX, XX, 2019.

FILE AN

OBJECTION

Notify the Court if you have any objections to the settlement. The deadline to file an Objection with the Court is XXX, XX, 2019.

DO NOTHING You will not receive a cash Benefit. You will release your Claims relating to the lawsuit against Ocwen and CCHS and you will not be able to sue Ocwen or CCHS for any Claim relating to the lawsuit.

These rights and options – and the deadlines to follow – are explained in this Notice.

WHAT THIS NOTICE CONTAINS

BASIC INFORMATION ........................................................................................................................................ 1. WHAT IS THIS LAWSUIT ABOUT? ..................................................................................................................... 2. WHO IS AFFECTED BY THIS SETTLEMENT 3. WHY IS THIS A CLASS ACTION? ....................................................................................................................... 4. WHY IS THERE A SETTLEMENT AND WHAT IS ITS EFFECT? ..............................................................................

THE SETTLEMENT BENEFITS – WHAT YOU GET ..................................................................................... 5. WHAT DOES THE SETTLEMENT PROVIDE? .......................................................................................................

HOW TO GET A PAYMENT – SUBMIT A CLAIM FORM ............................................................................ 6. HOW CAN I GET A PAYMENT? .......................................................................................................................... 7. WHAT HAPPENS IF I DON’T SEND IN A CLAIM FORM? ......................................................................................

EXCLUDING YOURSELF FROM THE SETTLEMENT ................................................................................. 8. WHAT DOES EXCLUDING MYSELF FROM THE SETTLEMENT MEAN? .................................................................

OBJECTING TO THE SETTLEMENT ............................................................................................................... 9. HOW CAN AN OBJECTION BE MADE? ...............................................................................................................

THE LAWYERS REPRESENTING YOU ...........................................................................................................



10. WHO IS CLASS COUNSEL? ..............................................................................................................................

THE FAIRNESS HEARING .................................................................................................................................. 11. WHAT IS A FAIRNESS HEARING? .....................................................................................................................

GETTING MORE INFORMATION .................................................................................................................... 12. HOW DO I GET MORE INFORMATION ABOUT THE SETTLEMENT? ......................................................................

BASIC INFORMATION

1. What is this lawsuit about?

This class action lawsuit claims that Ocwen and CCHS (together “Defendants”) unlawfully enrolled certain Ocwen customers in home warranty and service plans offered by CCHS. The class action alleges that Defendants mailed Ocwen’s customers checks for $2.50, $3.50, or similar low sums, and further alleges that the checks were designed to appear as if they were rebates or refunds issued by Ocwen, but when cashed or deposited, resulted in Ocwen customers being enrolled in CCHS’s home warranty or service plans. Defendants charged for the plans on customers’ monthly mortgage statements.

Defendants deny the characterization by Plaintiffs and any wrongdoing in their marketing and business practices.

This Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them. If the Court approves the Settlement and it becomes final, a Settlement Administrator appointed by the Court will make the Benefit payments provided by the Settlement.

2. Who is affected by this Settlement? All current and former Ocwen, GMAC, and Homeward Residential customers who (a) were enrolled in one or more CCHS warranty or home service plans between August 6, 2009 and December 31, 2013 after cashing or depositing one of Defendants’ check solicitations, (b) made one or more payments for a plan(s), (c) never made a claim under a plan, and (d) never received a full refund of all premiums paid for a plan(s). This Settlement Class includes some former GMAC and Homeward Residential customers whose loans were never serviced by Ocwen. Excluded from the Settlement Class are current and former employees of Ocwen and CCHS, and the Judges to this case (see the full Settlement Agreement for the complete list of exclusions). 3. Why is this a class action?

In a class action, one or more individuals called Class Representatives sue as Plaintiffs on behalf of others who have similar claims. In this class action, the Plaintiff Class Representatives Margarita Delgado and William Sheppard together with twenty-two other Class Representatives from different states where Defendants did business sued on behalf of Ocwen mortgage customers as well as former GMAC and Homeward Residential mortgage customers (the “Class Members”).



4. Why is there a Settlement and what is its effect?

After more than five years of litigation and extensive negotiations, the parties have agreed to a Settlement. The Court did not make any decisions as to the ultimate merits of the allegations. A Settlement avoids the uncertainty, risks and delay of continued litigation, and gives Class Members the opportunity to receive cash Benefits now subject to the Settlement’s approval by the Court. Both the Class Representatives and their lawyers believe that the Settlement is fair and in the best interest of the Class. Unless you Opt-Out, you are accepting the Settlement. This means that if the Settlement is approved, you will be releasing all Claims in this class action and will not to be able to sue Defendants as to any of the Claims brought in this lawsuit, whether you file a Claim Form for a Benefit or not.

THE SETTLEMENT BENEFITS – WHAT YOU GET

5. What does the Settlement provide?

If you submit a Valid Claim Form by [claim deadline], you can receive a cash Benefit payment that is up to 77% of the total amount you paid for the home warranty or service plan you were enrolled in. The refund amount depends on how long you paid a premium of $14.95 to $54.95 per month. For example, if you were enrolled in a Plan and charged $14.95 per month on your Ocwen mortgage statement for 6 months, your settlement payment could be up to $69 (i.e., $14.95 x 6 months = $89.70; 77% of $89.70 is $69). If you were enrolled in a Plan and charged $54.95 per month for 3 months, your settlement payment could be up to $126.93 (i.e., $54.95 x 3 months = $164.85; 77% of $164.85 is $126.93).

The amount of your claim also depends on the amount of other submitted Claims for the available monetary benefits, the Attorneys’ Fees and Costs as approved by the Court, as well as the Named Plaintiff Service Awards as approved by the Court.

As part of the Settlement, CCHS will also notify all customers currently enrolled in a CCHS home warranty or service plan that they are enrolled in a Plan and have the opportunity to discontinue the Plan if they so choose. Finally, as a result of the Plaintiff Class Representatives’ efforts in this litigation, Defendants stopped sending out check solicitations all together and previously paid $1,632,605.48 in refunds to customers who never made a claim under one of the plans.

HOW TO GET A PAYMENT – SUBMIT A CLAIM FORM

6. How can I get a cash Benefit payment?

To qualify for a cash Benefit payment, you must fill out and timely submit a Claim Form by [Date]. You can submit the Claim Form online at www.xxxxxx.com. If you want to submit a paper Claim Form by mail, you can print a copy available online at www.xxxxx.com, or call XXX-XXX-XXXX and ask for a paper claim form to be mailed to you.

You will need to include your CLAIMANT CODE on the Claim Form. This code is in BOLDED font on the postcard and /or email you received. Claim Forms submitted by mail must be postmarked by [Date]; Claim Forms filed online must be submitted by [Date] at 11:59PM.

If you submit an incomplete or late Claim Form, your Claim will not be deemed a Valid Claim and you will be ineligible to receive a Benefit payment under the settlement.



7. What happens if I don’t send in a Claim Form?

If you don’t submit a Claim Form, and don’t opt-out from the Settlement as described in the next section below, you will still be bound by all the terms of the Settlement, including Releasing all Claims as described below, you will not be able to sue Defendants for the Claims alleged in this class action, and you will not receive any Benefit payment from the Settlement.

OPT-OUT FROM THE SETTLEMENT

8. What does excluding myself from the settlement mean? If you don’t want a Benefit payment from the Settlement, then you may Opt-Out (i.e. exclude yourself) from the Settlement. To Opt-Out from the Settlement, you must submit a statement to the Settlement Administrator that is signed and states your full name, address, and phone number stating “I/We wish to be excluded from the Settlement Class and Settlement in the Delgado Action.” Your Opt-Out statement must be returned to the Settlement Administrator so that it is postmarked on or before [Date]: Class Action Opt-Out, Attn: Delgado v. Ocwen, PO Box XXXX, XX, XX, XXXX.

If you choose to Opt-Out of the settlement: (1) you will not get any Settlement Benefit; and (2) you cannot file an Objection to the Settlement. By Opting-Out, you will not be legally bound by the Settlement, and may still pursue your own Claims against Defendants at your own expense if they are not too late under the applicable statute of limitations.

OBJECTING TO THE SETTLEMENT

9. How can an Objection be made?

If you fall within the definition of a Class Member set forth above, you may file an Objection to the Settlement. You cannot object to the Settlement if you Opt-Out from the lawsuit. Any Objection must be filed with the Court and must be served upon the Settlement Administrator as well as upon all the lawyers representing the Class and the Defendants at the addresses below.

Your written Objection must be served on Class Counsel and Defendants’ Counsel (listed below) no later than [DATE] and include all of the following information to be considered valid: (a) a reference at the beginning to Delgado v. Ocwen Loan Servicing, LLC., No. 1:13-cv-04427-NGG-SLT (Eastern District of New York); (b) the objector’s full name, address, telephone number, and email address; (c) the objection must state whether it applies only to the objector, to a specific subset of the class, or to the entire class, and also state with specificity the grounds for the objection; (d) copies of any papers, briefs, or other documents upon which the Objection is based; (e) a list of all persons who will be called to testify in support of the Objection; (f) a statement of whether the objector intends to appear at the Final Approval Hearing, and if the objector files an Objection through counsel or intends to appear at the Final Approval Hearing through counsel, then all such attorneys representing the objector, whether admitted or not in New York, must enter an appearance concurrently with serving the Objection; (g) a statement of his, her, or its membership in the Settlement Class, including all information required by the Claim Form; and (h) a detailed list of any other Objections and any orders pertaining to the prior objections pertaining to the Objector or his or her Counsel submitted or entered in any court, whether state or federal, in the United States in the previous five (5) years. If the Settlement Class Member or his, her, or its counsel has not objected to any other class action settlement in any court in the United States in the previous five (5) years, he, she, or it shall affirmatively state so in the written materials provided in connection with the Objection to this Settlement.



If you wish to object to the settlement and you do not serve a written Objection containing all of the information listed above, you will not be permitted to object to the Settlement and will be foreclosed from seeking any review of the Settlement by any means, including but not limited to an appeal. Members of the Settlement Class who do not timely make their Objections in this manner will be deemed to have waived all Objections and shall not be entitled to be heard at the Fairness Hearing. You have the right to retain a lawyer at your own expense to file your Objection. If your lawyer intends to appear at the Fairness Hearing, your lawyer must file and serve a notice of appearance with the Clerk of the Court and upon all counsel of record.

CLASS COUNSEL

DEFENDANT OCWEN LOAN SERVICING, LLC’S COUNSEL

DEFENDANTS CROSS COUNTRY HOME SERVICES, INC. AND SANDRA FINN’S COUNSEL

Steven L. Wittels J. Burkett McInturff Tiasha Palikovic WITTELS LAW, P.C. 18 Half Mile Road Armonk, NY 10504

Matthew P. Previn BUCKLEY LLP 1133 Avenue of the Americas, Suite 3100 New York, NY 10036-6710

David J. Fioccola Jessica Kaufman Robert J. Baehr MORRISON & FOERSTER LLP 250 West 55th Street New York, NY 10019-9601

THE LAWYERS REPRESENTING YOU

10. Who is Class Counsel?

The Court has appointed the following lawyers to represent you and the Class: Steven L. Wittels, J. Burkett McInturff, and Tiasha Palikovic of Wittels Law, P.C.

You are not personally responsible for payment of Attorneys’ Fees and Costs for Class Counsel.

Class Counsel has worked for more than five years without pay or any guarantee of obtaining a recovery for the Ocwen customers who were harmed by the alleged consumer fraud described in this settlement. In a class action, it is customary for the attorneys representing the Class to request a legal fee and reimbursement of expenses. Thus, Class Counsel will ask the Court to approve a legal fee of up to one-third of the value of the monetary settlement recovery as updated at time of final court approval ($24,824,622 + $1,632,605.48), to be paid from the total settlement amount of $24,824,622, as well as reimbursement of litigation expenses not to exceed $600,000. Class Counsel will also ask the Court to authorize Service Awards ranging from $2,500 to $15,000 to be paid from the settlement amount to the Class Representatives who contributed in a significant way by, among other things, bringing this action, providing important information and documents used to achieve the settlement, and having their depositions taken by Defendants.

THE FAIRNESS HEARING

11. What is a Fairness Hearing?

The Court will hold a final Fairness Hearing on the fairness and adequacy of the proposed Settlement and its terms before the Honorable Nicholas G. Garaufis, in Courtroom 1416S of the United States District Court for the Eastern District of New York, 225 Cadman Plaza East, Brooklyn, NY 11201 on [DATE]. You do not have to appear at this Fairness Hearing.



GETTING MORE INFORMATION

12. How do I get more information about the settlement?

You can contact the Settlement Administrator at (800) XXX-XXXX; or you may visit the Settlement Website at http://www.xxxxxxxxx.com, where you will find answers to frequently asked questions about the Settlement as well as copies of all pertinent Settlement documents, including the Settlement Agreement.

You may also contact Class Counsel Steven L. Wittels, J. Burkett McInturff, or Tiasha Palikovic at [email protected] or (XXX) XXX-XXXX. You may also read the full Settlement Agreement by requesting to see the court file for Delgado et al. v. Ocwen Loan Servicing, LLC et al., Case No. 13 Civ. 4427 (NGG) (SLT) during regular business hours in the Clerk’s Office at 225 Cadman Plaza East, Brooklyn, NY 11201.

PLEASE DO NOT CONTACT THE CLERK OF THE COURT, THE JUDGE, OR ANY OF THE DEFENDANTS WITH INQUIRIES ABOUT THE SETTLEMENT.


<<LOGO>>

XXX-XXX-XXXX

<<Customer Name1>> <<Mailing Address>> <<Mailing City>>, <<State>> <<Zip>> Contract Number: <<Contract ID>> Dear <<Customer Name1>>: Thank you for being a valued member with <<Product Name>> since <<Enrollment Date>>. You were enrolled in <<Product Name>> after cashing or depositing a small-dollar check that we sent to you to encourage you to try our product. Cross Country’s records show that to date you have not used any of the benefits offered by <<Product Name>>. Millions of homeowners have trusted us with their home warranty protection, because of the peace of mind in knowing they are protected from large unexpected bills when their systems and appliances break down. They also don’t want the hassle of having to search the Internet or yellow pages for a service professional when their A/C system or refrigerator fails. Cross Country is all about providing you savings, security and convenience. Cross Country looks forward to providing you with continued peace of mind if you wish to continue your enrollment in <<Product Name>>. For your convenience, should you wish to cancel your coverage, please fill out and send in the attached card, or contact us at XXX-XXX-XXXX, and your payment method on file will no longer be charged. Sincerely, <<Product Name>> Customer Service Team [INSERT CUSTOMER SERVICE NUMBER] Name Warranty #

<<Customer Name1>> <<Contract ID>>

Address

<<Mailing Address>> Check this box to cancel your warranty.

<<Mailing City>>, <<State>> <<Zip>>


[Front of Envelope] [HomeSure Entity Underwriting Product] In Conjunction with [Ocwen Loan Servicing/Your Current Mortgage Servicer]

FIRST-CLASS MAIL U.S. POSTAGE PAID

MILWAUKEE, WI PERMIT NO. 3780

Important Notice Regarding Continuation of Your Current

[Home Warranty] [Home Service] Plan(s) See Enclosed For Details

[Address Line 1] [Address Line 2]


UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK

Case No. 1:13 Civ. 04427 (NGG) (ST)

CLASS ACTION

[PROPOSED] ORDER APPROVING PLAINTIFFS’ UNOPPOSED

MOTION FOR PRELIMINARY APPROVAL OF CLASS ACTION

SETTLEMENT

THIS CAUSE is before the Court on Plaintiffs’ Unopposed Motion for Preliminary

Approval of Class Action Settlement. Having reviewed the motion and supporting papers

including the Settlement Agreement, and the record in this case, and for good cause shown:

IT IS HEREBY ORDERED AND ADJUDGED THAT:

Preliminary Approval of Settlement Agreement

1. The Court finds for the purposes of preliminary approval, that the proposed

settlement, as set forth in the Parties’ Settlement Agreement, is fair, reasonable, adequate, and in

the best interests of the Class. The Court further finds that the settlement was entered into at

arm’s length by highly experienced counsel. The Court therefore preliminarily approves the

proposed settlement.

Class Certification

2. The Court conditionally certifies, for settlement purposes only, pursuant to

Federal Rule of Civil Procedure 23(a) and 23(b)(3), a Settlement Class defined as:

All current and former mortgage Ocwen, GMAC, and Homeward Residential customers who (a) were enrolled in one or more Cross

MARGARITA DELGADO, et al., Individually and on Behalf of All Others Similarly Situated, Plaintiffs, v. OCWEN LOAN SERVICING, LLC, et al., Defendants.


2

Country Home Services (“CCHS”) warranty or home service plans between August 6, 2009 and December 31, 2013 (“Plans”) after cashing or depositing one of CCHS’s check solicitations; (b) made one or more payments for a Plan; (c) never made a claim under a Plan, and (d) never received a full refund of all premiums paid for a Plan.

This Settlement Class includes some former GMAC and Homeward Residential customers

whose loans were never serviced by Ocwen. Excluded from the Settlement Class are:

Defendants, any entities in which they have a controlling interest, any of their parents,

subsidiaries, affiliates, officers, directors, employees and members of such person’s immediate

family and the presiding judge(s) in this case and their immediate family.

3. Pursuant to the Settlement Agreement, and for settlement purposes only, the

Court finds as to the Settlement Class that:

(a) the Class is so numerous that joinder of all members is impracticable;

(b) there are questions of law or fact common to the Class;

(c) Plaintiffs’ claims are typical of the claims of the Class;

(d) Plaintiffs will fairly and adequately protect the interests of the Class;

(e) questions of law and fact common to Class Members predominate over any questions

affecting only individual Class Members; and,

(f) a class action is superior to other available methods for fairly and efficiently

adjudicating the controversy.

4. The Court finds Plaintiffs Margarita Delgado, William Sheppard, Geraldine

Mahood, Kevin Chowning, Lya Chowning, Paul Emmert, Carolyn Toth, Brian Rafacz,

Jennifer Hendricks, Cynthia Beniwal, Kimberly Kayes, Justin Wisnewski, Laurie

Cheamitru, Dale Zimmer, Michael Benhamu, Meghan Fox, Dan Wilkinson, Kent Collier,

Theresa McCullough, Ben Elliott, Jason Abt, Nathan May, Cami Peloza, and Terry Oliver

are adequate and appoints them as Representatives of the Settlement Class.


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5. The Court finds Steven Wittels, J. Burkett McInturff and Tiasha Palikovic of

Wittels Law, P.C., having previously been appointed Interim Class Counsel, and J. Christopher

Jenson of Cowan, Liebowitz & Latman, P.C., are all skilled and capable attorneys for the Class,

and they are hereby appointed full Class Counsel to represent the interests of the Class Members.

Notice to Class Members

6. The Court approves the form and content of the proposed Short Form Settlement

Notice, Long Form Notice, and Claim Form (Exhibits A, B & E to the Settlement Agreement

“SA” — collectively, “Class Notice”), and approves the Parties’ proposal (i) to disseminate the

Short Form Settlement Notice by both first-class U.S. Mail and email, followed by a Reminder

Notice, and (ii) to disseminate the Long Form Notice and Claim Form on a website established

by the Claims Administrator, as set forth in the Settlement Agreement. The Court finds that the

Parties’ proposal regarding notice to the Class constitutes the best notice practicable under the

circumstances, and complies fully with the notice requirements of due process and Fed. R. Civ.

P. 23. The Court further finds that both the Notice to Current Enrollees (Exhibit C to the SA),

which will be sent to Class Members who are current CCHS customers, and the proposed IVR

for the website (Exhibit F to the SA), are appropriate as described in the Settlement Agreement.

7. The Court approves the Settlement Agreement’s schedule for dissemination of the

Class Notice, requesting exclusion from the Settlement Class or objecting to the settlement,

submitting papers in connection with Final Approval, and the Final Approval Hearing.

Claims Administration

8. The Court approves the appointment of Heffler Claims Group as the Claims

Administrator, with the responsibilities set forth in the Settlement Agreement.

9. As described in the Settlement Agreement, Class Members will have 60 days to

file their claims from the date on which Class Notice is disseminated to the Class. Any Member


4

may opt out of the Class by mailing a completed request for exclusion to the Claims

Administrator and all counsel within 60 days after the date on which Class Notice is

disseminated to the Class. Persons or entities that request exclusion from the Class shall not be

bound by any judgment. Opt-Out requests must be signed by the Class Member who is

requesting exclusion; include the full name, address, phone number(s), and email(s) of the Class

Member requesting exclusion; and include the following statement: “I/We request to be excluded

from the Settlement Class and Settlement in the Delgado Action.” No Class Member, or any

person acting on behalf of or in concert or participation with that Class Member, may exclude

any other Class Member from a Settlement Class. So-called “mass” or “class” opt-outs shall not

be allowed and shall be deemed invalid.

10. Any potential member of the Class that does not properly and timely opt out of

the settlement shall be included in the Class and shall be bound by all the terms and provisions of

the Settlement Agreement, whether or not such class member shall have objected to the

Settlement.

11. Any objecting Class Member must file with the Court a written objection,

postmarked on or before the Claim Deadline. If any objecting Class Member who timely filed a

written objection also intends to appear at the Final Approval Hearing, he or she must also file with

the Court a notice of intention to appear before the Court at the Final Approval Hearing, postmarked

on or before the Claim Deadline. Any objection and/or a notice of intention to appear must be served

on Class Counsel, Defendants’ counsel, and the Settlement Administrator. To be effective, any

Objection must contain all the following information:

a. a reference at the beginning to Delgado v. Ocwen Loan Servicing, LLC., No. 1:13-

cv-04427-NGG-SLT (Eastern District of New York),

b. the objector’s full name, address, telephone number, and email address;


5

c. the Objection must state whether it applies only to the objector, to a specific subset

of the class, or to the entire class, and also state with specificity the grounds for the

Objection;

d. copies of any papers, briefs, or other documents upon which the Objection is based;

e. a list of all persons who will be called to testify in support of the Objection;

f. a statement of whether the objector intends to appear at the Final Approval Hearing.

If the objector intends to appear at the Final Approval Hearing through counsel, the

Objection must also state the identity of all attorneys representing the objector who

will appear at the Final Approval Hearing, and all such attorneys representing the

objector must enter an appearance concurrently with serving the Objection, whether

or not the objector’s counsel will appear at the Final Approval Hearing or whether

or not admitted in New York;

g. a statement of his, her, or its membership in the Settlement Class, including all

information required by the Claim Form;

h. a detailed list of any other Objections and any orders pertaining to the prior

objections pertaining to the objector or his or her Counsel submitted or entered in

any court, whether state or federal, in the United States in the previous five (5)

years. If the Settlement Class Member or his, her, or its counsel has not objected

to any other class action settlement in any court in the United States in the previous

five (5) years, he, she, or it shall affirmatively state so in the written materials

provided in connection with the Objection to this Settlement.

Final Approval Hearing

12. A Final Approval Hearing is hereby scheduled to be held before the undersigned

on _________________, 2019__, at ____ am/pm, to consider the fairness, reasonableness and


6

adequacy of the Settlement Agreement, the entry of a Final Order and Judgment in the case,

proposed service awards to Plaintiffs, an application for attorneys’ fees, costs and reimbursement

of expenses made by Class Counsel, and any other related matters that are brought to the

attention of the Court in a timely fashion.

13. Any member of the Class that has not filed a request for exclusion may appear at

the Final Approval Hearing in person or by counsel and may be heard, to the extent allowed by

the Court, either in support of or in opposition to the fairness, reasonableness, and adequacy of

the settlement; provided, however, that no person shall be heard in opposition to the settlement,

and no papers or briefs submitted by or on behalf of any such person shall be accepted or

considered by the Court, unless, in accordance with the deadlines above, such person: (a) filed

with the Clerk of the Court a notice of such person’s intention to appear as well as a statement

that indicates the basis for such person’s opposition to the settlement, and any documentation in

support of such opposition; and (b) serves copies of such notice, statement, and documentation

upon all counsel.

14. The date and time of the Final Approval Hearing shall be set forth in the Notice

but shall be subject to adjournment by the Court without further notice to Class Members other

than which may be posted on the Court’s Electronic Case Filing (ECF) system or the website

created pursuant to the Settlement Agreement.

Dated: ____________ , 2019 Brooklyn, New York SO ORDERED:

_______________________________ Hon. Nicholas G. Garaufis, U.S.D.J.


Exhibit E


[Front of Postcard]

FIRST-CLASS MAIL U.S. POSTAGE PAID

MILWAUKEE, WI PERMIT NO. 3780

LEGAL NOTICE Important Notice about a Class Action Settlement A Settlement has been reached in a class action lawsuit affecting current and former mortgage customers of Ocwen, GMAC, and Homeward Residential who were enrolled in home warranty plans via check solicitations in the mail. Company records show you may be a class member and eligible to participate in the settlement. CLAIMANT CODE: XXXXXXXX [Name] [Address Line 1] [Address Line 2]


A Settlement has been reached in a class action lawsuit on behalf of current and former Ocwen, GMAC, and Homeward Residential mortgage customers who were enrolled in home warranty plans

after cashing solicitation checks received in the mail. Why did I receive this notice? Defendants’ records show you may be a class member in the Delgado v. Ocwen Loan Servicing, LLC settlement as (1) you are a current or former mortgage customer of Ocwen, GMAC, or Homeward Residential, (2) you were enrolled in a warranty or home service plan between August 6, 2009 and December 31, 2013 after cashing or depositing a check sent to you by a company called Cross Country Home Services, (3) you made one or more payments for the plan, (4) you never made a claim under the plan, and (5) you never received a full refund of all premiums paid for the plan. This Settlement Class includes some former GMAC and Homeward Residential customers whose loans were never serviced by Ocwen. What is this class action about? This lawsuit alleges that Defendants improperly enrolled you in a home warranty or service plan you never used. You paid from $14.95 to $54.95 per month for a plan when you made your monthly mortgage payment. What can you get from the Settlement? The settlement provides refunds of up to 77% of the amount you paid for the entire period you were enrolled. The refund amount depends on how long you paid a premium of $14.95 to $54.95 per month. The maximum cash value of the settlement to all class members, including Class Counsel’s costs and fees, is $24,824,622 (as updated at time of final court approval).

How do you get a cash payment? To get a payment, you must submit a Claim Form by [XXX XX, 2019] either at [www.xxxxx.com] or by mail. You must include the Claimant Code on the Form, located on the front of this notice in bold font. What are your other options? If you do nothing, you won’t receive a payment, and will release your related legal claims if the settlement is finally approved. If you don’t want to be bound by the settlement you can opt-out or stay in the settlement and file an objection by XXX XX, 2019. The Court will hold a hearing on XXX XX, 2019 to consider whether to approve the settlement, service awards for class representatives who aided in the litigation ($2,500 to $15,000), and Class Counsel’s request for attorneys’ fees (up to one-third of the total cash value of the settlement plus litigation costs). You don’t have to appear at the hearing to receive a payment, or appear at the hearing to file an objection or opt-out. You may hire an attorney, at your own expense, to appear at the hearing. This is only a summary. For more information, please visit the Settlement Website at [www.xxxxxx.com] or you can contact Class Counsel: WITTELS LAW, P.C., www.wittelslaw.com or Tel: [(XXX) XXX-XXXX]

CLAIM DEADLINE: [XXXXX XX, 2019]

For more information about the Settlement: www.xxxxx.com or 800-xxx-xxxx.


Exhibit F


Delgado vs. Ocwen Loan Servicing LLC IVR Draft V1

855-447-2247

Welcome to the Delgado vs. Ocwen mortgage Voice Information System. This system uses a “frequently asked questions” format to briefly describe the proposed class action settlement of this case. After an opening description of the case, there will be a series of prompts for frequently asked questions, and also a prompt for you to speak to a representative by pressing # at any time.

Briefly, this class action claims that Defendants mailed Ocwen’s customers checks for $2.50, $3.50, or similar low sums, and further alleges that the checks were designed to appear as if they were rebates or refunds issued by Ocwen, but when cashed or deposited, resulted in Ocwen customers being enrolled in home warranty or service plans provided by a company called Cross Country Home Services, referred to in this message as “CCHS.” Defendants charged from $14.95 to $54.95 per month for the plans on customers’ monthly mortgage statements. Defendants deny the characterization by Plaintiffs and any wrongdoing in their marketing and business practices.

The Settlement provides up to $24,824,622 [as updated] from which payments will be made to eligible current and former Ocwen mortgage customers who were enrolled in CCHS warranty or home service plans.

Main Menu (Voiced) For “What is this Case about?” Please Press ‘1’ For “Am I a Class Member?” Please Press ‘2’ For “Why is there a Settlement?” Please Press ‘3’ For “What does the Settlement provide?” Please Press ‘4’ For” What do I need to do to receive a settlement payment? “Please Press ‘5’ For “Can I Exclude myself from the Settlement and If I don’t exclude myself can I sue the Defendants for the same thing later?” Please Press ‘6’ For “Do I have a lawyer in the case and how will they be paid?” Please Press ‘7’ For “How do I tell the court that I don’t like the Settlement or How can I object?” Please Press ‘8’ For “When and where will the court decide whether to approve the Settlement and do I have to attend?” Please Press ‘9’


For “How do I get more information about the settlement?” Please Press ‘0’

You can stay on the line to hear these options again or press ‘#’ to speak to a representative

What is this Case about? (Voiced) This class action lawsuit claims that Ocwen and CCHS unlawfully enrolled certain Ocwen customers in home warranty and service plans offered by CCHS. The class action alleges that Defendants mailed Ocwen’s customers checks for $2.50, $3.50 (or similar low sums) and further alleges that the checks were designed to appear as if they were rebates or refunds issued by Ocwen, but when cashed or deposited, resulted in Ocwen customers being enrolled in CCHS’s home warranty or service plans. Defendants charged from $14.95 to $54.95 per month for the plans on customers’ monthly mortgage statements. Defendants deny the characterization by Plaintiffs and any wrongdoing in their marketing and business practices.

You can press # to speak with a representative or press * to return to the Main Menu

Am I a Class Member? (Voiced)

The class consists of all current and former Ocwen, GMAC, and Homeward Residential customers who (a) were enrolled in one or more CCHS warranty or home service plans between August 6, 2009 and December 31, 2013 after cashing or depositing one of Defendants’ check solicitations, (b) made one or more payments for a plan or plans, (c) never made a claim under a plan, and (d) never received a full refund of all premiums paid for a plan or plans. This Settlement Class includes some former GMAC and Homeward Residential customers whose loans were never serviced by Ocwen. Excluded from the Settlement Class are current and former employees of Ocwen and CCHS, and the Judges to this case. You can see the full Settlement Agreement for the complete list of exclusions located at (WEBSITE).


Why is there a Settlement? (Voiced)

After more than five years of litigation and extensive negotiations, the parties have agreed to a Settlement. The Court did not make any decisions as to the ultimate merits of the allegations. A Settlement avoids the uncertainty, risks and delay of continued litigation, and gives Class Members the opportunity to receive cash Benefits now subject to the Settlement’s approval by the Court. Both the Class Representatives and their lawyers believe that the Settlement is fair and in the best interest of the Class. Unless you Opt-Out, you are accepting the Settlement. This means that if the Settlement is approved, you will be releasing all Claims in this class action and will not to be able to sue Defendants as to any of the Claims brought in this lawsuit, whether you file a Claim Form for a Benefit or not.



What does the Settlement provide? (Voiced)

If you submit a Valid Claim Form by [claim deadline], you can receive a cash Benefit payment that is up to 77% of the total amount you paid for the home warranty or service plan you were enrolled in. The refund amount depends on how long you paid a premium of $14.95 to $54.95 per month. For example, if you were enrolled in a Plan and charged $14.95 per month on your Ocwen mortgage statement for 6 months, your settlement payment could be up to $69. If you were enrolled in a Plan and charged $54.95 per month for 3 months, your settlement payment could be up to $126.93 (i.e., $54.95 x 3 months = $164.85; 77% of $164.85 is $126.93).

The amount of your claim also depends on the amount of other submitted Claims for the available monetary benefits, the Attorneys’ Fees and Costs as approved by the Court, as well as the Named Plaintiff Service Awards as approved by the Court.

As part of the Settlement, CCHS will also notify all customers currently enrolled in a CCHS home warranty or service plan that they are enrolled in a Plan and have the opportunity to discontinue the Plan if they so choose. Finally, as a result of the Plaintiff Class Representatives’ efforts in this litigation, Defendants stopped sending out check solicitations all together and previously paid $1,632,605.48 in refunds to customers who never made a claim under one of the plans.


What do I need to do to receive a settlement payment? (Voiced)

To qualify for a cash Benefit payment, you must fill out and timely submit a Claim Form by (CLAIM DEADLINE). You can submit the Claim Form online at (WEBSITE). If you want to submit a paper Claim Form by mail, you can download and print a copy available online at (WEBSITE), or press ‘#’ to speak with a representative and ask for a paper claim form to be mailed to you.

You will need to include your CLAIMANT CODE on the Claim Form. This code is in bold font on the postcard and /or email you received. The completed Claim Form must be submitted online by [CLAIM DEADLINE] or if mailed to the Settlement Administrator, postmarked by (CLAIM DEADLINE).

If you submit an incomplete or late Claim Form, your Claim will not be deemed a Valid Claim and you will be ineligible to receive a Benefit payment under the settlement.


Can I Exclude myself from the Settlement and If I don’t exclude myself can I sue the Defendants for the same thing later? (Voiced)

If you don’t want a cash Benefit payment from the Settlement, then you may Opt-Out or exclude yourself from the Settlement. To Opt-Out from the Settlement, you must submit a statement to the Settlement Administrator that is signed and states your full name, address, and phone number stating: “I or We wish to be excluded from the Settlement Class and Settlement in the Delgado Action.” Your Opt-Out statement must be returned to the Settlement Administrator so that it is postmarked on or before (EXCLUSION DATE): Class Action Opt-Out, Attn: Delgado v. Ocwen, (PO BOX). If you choose to


Opt-Out of the settlement: (1) you will not get any Settlement Benefit; and (2) you cannot file and Objection to the Settlement. By Opting-Out, you will not be legally bound by the Settlement, and may still pursue your own Claims against Defendants at your own expense if they are not too late under the applicable statute of limitations.


Do I have a lawyer in the case and how will they be paid? (Voiced)

The Court has appointed the following lawyers to represent you and the Class: Steven L. Wittels, J. Burkett McInturff, and Tiasha Palikovic of Wittels Law, P.C.

You are not personally responsible for payment of Attorneys’ Fees and Costs for Class Counsel.

Class Counsel has worked for more than five years without pay or any guarantee of obtaining a recovery for the Ocwen customers who were harmed by the alleged consumer fraud described in this settlement. In a class action, it is customary for the attorneys representing the Class to request a legal fee and reimbursement of expenses. Thus, Class Counsel will ask the Court to approve a legal fee of up to one-third of the value of the monetary settlement recovery to be paid from the total settlement amount of $24,824,622, as well as reimbursement of litigation expenses. Class Counsel will also ask the Court to authorize Named Plaintiff Service Awards of ranging from $1,000 to $20,000 to be paid from the settlement amount to the Class Representatives who contributed in a significant way by, among other things, bringing this action, providing important information and documents used to achieve the settlement, and having their depositions taken by Defendants.


How do I tell the court that I don’t like the Settlement or How can I object? (Voiced)

If you fall within the definition of a Class Member, you may file an Objection to the Settlement. You cannot object to the Settlement if you Opt-Out from the lawsuit. Any Objection must be filed with the Court and must be served upon the Settlement Administrator as well as upon all the lawyers representing the Class and the Defendants at the addresses stated at the conclusion of this question.

Your written Objection must be served on Class Counsel and Defendants’ Counsel no later than (OBJECTION DATE) and include all of the following information to be considered valid: (a) a reference at the beginning to Delgado v. Ocwen Loan Servicing, LLC., No. 1:13-cv-04427-NGG-SLT Eastern District of New York; (b) the objector’s full name, address, telephone number, and email address; (c) the objection must state whether it applies only to the objector, to a specific subset of the class, or to the entire class, and also state with specificity the grounds for the objection; (d) copies of any papers, briefs, or other documents upon which the Objection is based; (e) a list of all persons who will be called to testify in support of the Objection; (f) a statement of whether the objector intends to appear at the Final Approval Hearing, and if the objector files an Objection through counsel or intends to appear at the Final Approval Hearing through counsel, then all such attorneys representing the objector, whether admitted or not in New York, must enter an appearance concurrently with serving the Objection; (g) a statement of his, her, or its membership in the Settlement Class, including all information required by the Claim


Form; and (h) a detailed list of any other Objections and any orders pertaining to the prior objections pertaining to the Objector or his or her Counsel submitted or entered in any court, whether state or federal, in the United States in the previous five years. If the Settlement Class Member or his, her, or its counsel has not objected to any other class action settlement in any court in the United States in the previous five years, he, she, or it shall affirmatively state so in the written materials provided in connection with the Objection to this Settlement. If you wish to object to the settlement and you do not serve a written Objection containing all of the information stated, you will not be permitted to object to the Settlement and will be foreclosed from seeking any review of the Settlement by any means, including but not limited to an appeal. Members of the Settlement Class who do not timely make their Objections in this manner will be deemed to have waived all Objections and shall not be entitled to be heard at the Fairness Hearing. You have the right to retain a lawyer at your own expense to file your Objection. If your lawyer intends to appear at the Fairness Hearing, your lawyer must file and serve a notice of appearance with the Clerk of the Court and upon all counsel of record.

Address for Class Counsel:

Steven L. Wittels, J. Burkett McInturff, Tiasha Palikovic, Wittles Law P.C. 18 Half Mile Road Armonk, NY 10504

Address for Defendants Ocwen Loan Servicing, LLC’S Counsel:

Matthew P. Previn, Buckley LLP 1133 Avenue of the Americas, Suite 3100 New York, NY 10036-6710

Address for Defendants Cross Country Home Services, INC. and Sandra Finn’s Counsel:

David J. Fioccola, Jessica Kaufman, Robert J. Baehr Morrison & Foerster LLP 250 West 55th Street New York, NY 10019-9601


When and where will the court decide whether to approve the Settlement and Do I have to attend? (Voiced)

The Court will hold a final Fairness Hearing on the fairness and adequacy of the proposed Settlement and its terms before the Honorable Nicholas G. Garaufis, in Courtroom 1416S of the United States


District Court for the Eastern District of New York, 225 Cadman Plaza East, Brooklyn, NY 11201 on (FAIRNESS HEARING DATE). You do not have to appear at this Fairness Hearing.


How do I get more information about the settlement? (Voiced)

You may visit the Settlement Website at (WEBSITE) where you will find answers to frequently asked questions about the Settlement as well as copies of all pertinent Settlement documents, including the Settlement Agreement.

You may also contact Class Counsel Steven L. Wittels, J. Burkett McInturff, or Tiasha Palikovic at [email protected] or (COUNSEL TELEPHONE NUMBER).

You may also read the full Settlement Agreement by requesting to see the court file for Delgado et al. v. Ocwen Loan Servicing, LLC et al., Case No. 13 Civ. 4427 (NGG) (SLT) during regular business hours in the Clerk’s Office at 225 Cadman Plaza East, Brooklyn, NY 11201.

PLEASE DO NOT CONTACT THE CLERK OF THE COURT, THE JUDGE, OR ANY OF THE DEFENDANTS WITH INQUIRIES ABOUT THE SETTLEMENT.



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