PHH Mortgage to pay $45 million for improper mortgage servicing
January 03, 2018
PHH Mortgage Corp. has reached a $45 million settlement with 49 states, the District of Columbia, and 45 state mortgage regulators.
The settlement resolves charges that PHH, the nation’s ninth largest non-bank residential mortgage servicer, improperly serviced mortgage loans from Jan. 1, 2009 through Dec. 31, 2012. The agreement requires PHH to follow mortgage servicing standards, conduct audits, and provide audit results to a committee of the states.
“The foreclosure crisis continues to devastate communities across New York,” New York Attorney General Eric Schneiderman said Wednesday. “This settlement requires new mortgage servicing standards and ensures financial relief for homeowners harmed by PHH’s practices.”
The $45 million settlement includes $30.4 million in payments to borrowers, plus additional payments to states and mortgage regulators for the costs of the investigation.
Borrowers who had PHH foreclosures from 2009 to 2012 will qualify for a minimum $840 payment, and borrowers who faced foreclosures that PHH initiated during that period, but didn’t lose their home, will receive a minimum $285 payment.
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