NC Attorney General and Regulators Reach $45 Million Settlement with Mortgage Company That Wronged Consumers
PHH Mortgage Corporation improperly serviced mortgage loans from 2009 through 2012
North Carolina Attorney General Josh Stein, along with attorneys general from 48 states and the District of Columbia, and more than 40 state mortgage regulators, have reached a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.
Improperly Serviced Mortgage Loans
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.
"Homeowners suffered as a result of PHH's improper loan servicing," said Attorney General Josh Stein. "These new servicing standards will ensure that PHH doesn't mistreat future mortgage customers, and the financial relief will help some of the borrowers who were harmed as a result of the company's actions."
Borrows to Receive $30.4 million
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 to the 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.
Borrowers who faced foreclosures that PHH initiated during the eligible period, but did not lose their home, will receive at least $285.
In North Carolina, an estimated 1,080 borrowers will collectively receive a total of $720,165 from the settlement.
What happens next?
Borrowers eligible to receive compensation in this case will be contacted by a settlement administrator.