Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_05-cv-03851/USCOURTS-cand-4_05-cv-03851-9/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 15:1681 Fair Credit Reporting Act

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MICHAEL J. AGOGLIA (CA SBN 154810) 

STUART C. PLUNKETT (CA SBN 187971) 

RITA F. LIN (CA SBN 236220) 

MORRISON & FOERSTER LLP

425 Market Street 

San Francisco, California 94105-2482 

Telephone: 415.268.7000 

Facsimile: 415.268.7522 

E-mail: magoglia@mofo.com 

Attorneys for Defendant 

PMI MORTGAGE INSURANCE CO. 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

MICHELLE HOGAN, DAVID HOGAN, KAY 

CARTWRIGHT, and WILLIAM 

CARTWRIGHT, on Behalf of Themselves and 

All Others Similarly Situated, 

Plaintiffs, 

v. 

PMI MORTGAGE INSURANCE CO., 

Defendant. 

Case No. C 05 3851 PJH 

CLASS ACTION 

CONSENT ORDER 

This matter having come before the Court on December 13, 2006, and April 4, 2007 upon 

the motion of Representative Plaintiffs for preliminary and final approval of a settlement reached 

between the Parties, and upon review and consideration of the Settlement Agreement and the 

exhibits thereto, the evidence and arguments of counsel presented at the Court Approval Hearing 

held on April 4, 2007, the memoranda filed with the Court, and for other good cause having been 

shown, the Court finds that this settlement is the product of arms’ length negotiation and is fair, 

adequate, and reasonable, in part, because its terms comply with both the Fair Credit Reporting 

Act, 15 U.S.C. §§ 1681 et seq. (“FCRA”) and the Consumer Credit Reporting Agencies Act, 

California Civil Code § 1785 et seq. (“CCRAA”). IT IS HEREBY ORDERED and 

ADJUDGED, as follows: 

Case 4:05-cv-03851-PJH Document 84 Filed 04/10/07 Page 1 of 3
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1. The definitions set forth in the Settlement Agreement are hereby incorporated by 

reference into this Consent Order. Capitalized terms in this Consent Order shall have the same 

meaning as in the Settlement Agreement. Furthermore, as used in this Consent Order, the terms 

“Adverse Action Notice” shall mean a notice substantially in the form as Exhibit A hereto. 

3. This Consent Order is contingent upon Final Approval, and shall not become 

effective until the Final Approval Date. Further, in the event that Final Approval does not occur 

for any reason, this Consent Order shall be null and void ab initio. 

4. For a period of three (3) years commencing after the Final Approval Date or until 

October 1, 2009, whichever comes earlier, PMI shall provide Adverse Action Notices, or 

otherwise cause an Adverse Action Notice to be provided, to all persons who paid to his or her 

mortgage lender all or a portion of the premium for a Borrower-paid mortgage insurance 

coverage issued during the period of this Order by PMI to a mortgage lender, where the premium 

for that mortgage insurance was higher based upon information in that individual’s Credit Report. 

5. In light of the uncertainty raised by Plaintiffs regarding the proper application of 

the FCRA, the CCRAA and other applicable law to PMI’s practices, and PMI’s agreement to the 

terms of this Consent Order as part of the relief provided under the Court-approved Settlement 

Agreement, to the extent that PMI engages in conduct in conformity with this Consent Order, 

such conduct shall be deemed to be in compliance with the FCRA and the CCRAA, and PMI 

shall not be the subject to further liability for such conduct. 

6. Defendant shall be deemed in compliance with paragraph 4 of this Consent Order 

so long as it provides the required Adverse Action Notices, and without regard to whether such 

Notices are received by individual borrowers. 

7. In the event that during the period of this Consent Order: (a) changes occur in 

federal or state law pertaining to FCRA; (b) changes in federal or state law render PMI’s 

compliance with this Consent Order illegal and/or impracticable; or (c) changes in federal or state 

law substantively altering PMI’s obligations, if any, with respect to the provision of adverse 

action notices from those contained in this Consent Order, PMI shall be entitled to conform its 

practices accordingly. In each such instance, PMI shall provide advance written notice of the 

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change in practice to Class Counsel. If Class Counsel, acting in good faith, disagree that the 

proposed change is consistent with changes to law, they shall within fifteen days (15) provide to 

Counsel for Defendant written notice of any objections to the proposed change in practices and 

the reasons for same. Thereafter, PMI may only implement the proposed change in practice upon 

resolution of a noticed motion to this Court, served on Class Counsel, which may request that the 

Court amend the terms of this Consent Order, or, alternatively, dissolve this Consent Order, 

provided, however, that any such request shall be based upon: (a) changes in federal or state law 

pertaining to FCRA; (b) changes in federal or state law rendering PMI’s compliance with this 

Consent Order illegal and/or impracticable; (c) changes in federal or state law substantively 

altering PMI’s obligations, if any, with respect to the provision of Adverse Action Notices from 

those contained in this Consent Order; and/or (d) a showing good cause for the requested 

amendment and/or dissolution of this Consent Order. For purposes of this paragraph, “law” shall 

include any enacted act of Congress or state legislature, any subsequently promulgated rule, 

statute, regulation, or interpretation, and any court decision or order, concerning law. Nothing in 

this paragraph shall be construed to prohibit Class Counsel from opposing any Motion by PMI for 

amendment or dissolution of this Consent Order. 

8. If this Consent Order is not terminated and/or dissolved earlier pursuant to 

paragraph 6 above, it shall terminate and dissolve by its terms, without need for further judicial 

action, three (3) years after the Final Approval Date or October 1, 2009, whichever comes earlier. 

9. There shall be no bond posted, in consideration of the nature of the Action. 

Dated: _________________, 2007 

_____________________________________ The Honorable Phyllis J. Hamilton 

United States District Judge 

April 4

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

IT IS SO ORDERED

Judge Phyllis J. Hamilton

Case 4:05-cv-03851-PJH Document 84 Filed 04/10/07 Page 3 of 3