$9M Dovenmuehle Mortgage Settlement Wraps Up Class Action Lawsuit Over Payment Service Fees

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Dovenmuehle Mortgage has agreed to a $9,000,000 settlement to resolve a class action lawsuit that alleged the residential loan servicer unlawfully assessed service fees to North Carolina mortgagors who made residential loan payments by telephone or interactive voice recognition (IVR).

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The $9 million Dovenmuehle Mortgage class action settlement received preliminary approval from the court on June 4, 2026. The deal covers all individuals with a residential mortgage loan serviced or subserviced by Dovenmuehle for a North Carolina property and who paid a fee to the company when making a mortgage payment by telephone or IVR between April 10, 2020 and January 13, 2026.

The court-approved website for the Dovenmuehle Mortgage settlement can be found at DovenmuehlePhoneFeeLawsuit.com.

Dovenmuehle settlement class members do not need to take any action to receive a cash payment from the deal via paper check.

Each class member’s cash payout will be a pro rata share of the settlement fund after payment of all court-approved deductions. It is estimated that each class member will receive approximately $425 for each pay-to-pay fee they paid.

Class members who prefer to receive their cash payment electronically can head to this page and log into the payment preference form using the ILYM ID listed on their copy of the settlement notice.

The court will determine whether to grant final approval to the Dovenmuehle pay-to-pay fee settlement following a hearing on November 5, 2026. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Dovenmuehle Mortgage class action lawsuit alleged that the residential mortgage loan servicer improperly assessed pay-to-pay fees to North Carolina borrowers making loan payments by phone or IVR, allegedly in violation of the North Carolina Debt Collection Act and Unfair and Deceptive Trade Practices Act.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest class action settlements.