COLUMBUS — Ohio Attorney General Mike DeWine, along with the attorneys general of 48 other states and the District of Columbia, has reached a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.
The settlement, which also was joined by more than 40 state mortgage regulators, resolves allegations that PHH, a non-bank residential mortgage originator and servicer, improperly serviced mortgage loans between 2009 and 2012.
“Mortgage servicing abuses harmed thousands of Ohioans and put numerous families into foreclosure,” DeWine said. “This settlement continues our work to help affected borrowers receive compensation and to prevent further abusive conduct through new servicing standards.”
More than $30 million of the settlement is designated for payments to affected borrowers, and about 2,000 Ohio borrowers are expected to qualify for payments totaling more than $1.2 million.
Borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, while eligible borrowers who faced PHH-initiated foreclosures but did not lose their home will qualify to receive a minimum $285 payment. A settlement administrator will contact eligible payment recipients at a later date.
The agreement requires PHH to follow comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states. The settlement does not release PHH from liability for any conduct that may have occurred since 2013.
The Ohio Attorney General’s Office was part of the executive committee that helped lead the investigation and negotiations, which resulted in the settlement.
Participating in the settlement are the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.
The agreement, through a proposed consent judgment, is being filed in the U.S. District Court for the District of Columbia.
Story courtesy of Ohio Attorney General Mike DeWine’s office.