BREAKING NEWS

AG Hawley Reaches $45 Million Multistate Settlement with PHH Mortgage Corporation


Jan 4, 2018, 14:03 PM
DateTime:
Jan 4, 2018, 14:01 PM

Jefferson City, Mo. – Missouri Attorney General Josh Hawley, along with attorneys general from 48 states plus the District of Columbia, and more than 40 state mortgage regulators, reached a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.

The settlement resolves allegations that PHH, the nation’s ninth largest non-bank residential mortgage originator and servicer, improperly serviced mortgage loans from January 1, 2009 through December 31, 2012. The agreement requires PHH to follow comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states.

“Home ownership is at the center of the American dream, and my Office will take action against companies whose illegal business practices would frustrate that dream,” Hawley said. “This settlement holds PHH to account for its improper loan servicing practices and demonstrates our continued dedication to fighting bad business practices. The agreement not only provides financial relief to aggrieved homeowners but also requires PHH to adhere to comprehensive servicing standards to help ensure that PHH no longer engages in improper mortgage servicing.”

The $45 million settlement includes $30.4 million in payments to borrowers. The settlement also includes payments to the state attorneys general who helped lead the investigation and negotiations, and state mortgage regulators. The settlement does not release PHH from liability for any conduct that may have occurred since 2013.

Borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, and borrowers who faced foreclosures that PHH initiated during the eligible period, but did not lose their home, will receive at least $285. Approximately 1,330 Missourians are eligible for a payment. A settlement administrator will contact eligible recipients at a later date.