Multistate settlement resolves alleged misconduct on single-family residential mortgages
FRANKFORT, KY. (Jan. 3, 2018) – Attorney General Andy Beshear today announced nearly 550 Kentuckians who faced foreclosures on their homes from New Jersey-based PHH Mortgage Company are eligible for payment through a multistate settlement against the company.
Beshear, 48 other state attorneys general, the District of Columbia and over 45 state mortgage regulators have reached a $45 million settlement with mortgage lender and servicer PHH Mortgage Corporation, the nation’s ninth largest non-bank residential mortgage servicer.
The settlement resolves allegations that PHH improperly serviced single-family residential mortgage loans from Jan. 1, 2009, through Dec. 31, 2012.Allegations of servicing improprieties included, but were not limited to, failing to timely and accurately apply payments made by borrowers; charging unauthorized fees for default-related services; and failing to properly process borrowers’ applications for loan modifications.
The $45 million settlement includes $30.4 million in payments to borrowers.
In Kentucky, 548 borrowers are eligible for a payment:
A settlement administrator on the case will contact Kentuckians eligible for payments.
The settlement requires PHH to adhere to comprehensive mortgage servicing standards, conduct audits and provide audit results to a committee of states.
The settlement does not release PHH from liability for conduct that occurred beginning in 2013.
“As Attorney General, I am committed to protecting Kentucky families,” Beshear said. “This settlement holds PHH accountable for its past abusive practices, and it provides some relief to Kentuckians. Tough standards will also require PHH to treat people fairly in the future.”
The number of residents from bordering states impacted from the settlement includes: Illinois: 2,816; Indiana: 1,533; Missouri: 1,330; Ohio: 2,079; Tennessee: 815; Virginia: 1,071; West Virginia: 292.
