Rutledge Part of $45 Million Settlement with PHH Mortgage Corporation
January 5, 2018
Says, ‘agreement sets servicing standards that PHH must provide to protect consumers’
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge announced today that she, along with attorneys general from 48 other 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.
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.
“This agreement sets servicing standards that PHH must provide to protect consumers going forward,” said Attorney General Rutledge. “This settlement holds PHH accountable for failing to timely apply payments, maintain accurate account statements, threatening foreclosure and other deceptive and unfair activities conducted by the business.”
The settlement includes $30.4 million in payments to borrowers who were foreclosed upon or referred to foreclosure. 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, are eligible to receive at least $285.
Approximately 520 Arkansas borrowers are eligible for compensation under the settlement. A settlement administrator will contact eligible recipients at a later date.
The settlement also includes nearly $160,000 to the Arkansas Securities Department for violations of certain State regulations. The settlement does not release PHH from liability for any conduct that may have occurred since 2013.