The agreement is entered into between the United States of America through the Department of Justice, and PHH mortgage corporation, through its authorized representatives. The deadline for borrowers who were foreclosed upon by PHH at any point between January 1, 2009, and December 31, 2012, to file a claim on the in the 45-million-dollar settlement reached by the Texas Attorney General and 48 other states, is fast approaching.
The settlement requires PHH to adopt new servicing standards and provide monetary relief to affected borrowers, though the company counters it already currently uses said standards. The settlement is between PHH and the Multi-State Mortgage Committee, including more than 45 state mortgage regulators, along with 49 state attorneys general, and the District of Columbia.
Every state took part in the settlement, except New Hampshire. It is unknown at this time why New Hampshire is not a party in the settlement. Housing Wire contacted the New Hampshire Attorney General, and this article will be updated should the AG respond.
According to the complaint filed by the state attorneys general, PHH “threatened foreclosure and conveyed conflicting messages to certain borrowers engaged in loss mitigation. As part of the settlement, PHH will pay more than $30 million to borrowers who lost their homes to foreclosure or were referred for foreclosure during the period in question.
PHH borrowers whose homes were lost in foreclosure during that period will qualify for a minimum $840 payment, while borrowers who faced foreclosures that PHH initiated, but did not lose their home, will receive a minimum $285 payment.
In total, the $45 million settlement includes $30.4 million in payments to borrowers, $1 million for claims administration, an additional $5 million to the lead states that headed up the investigation and negotiations, and a separate $8.8 million payment to state mortgage regulators.
In a statement, PHH said that it agreed to the settlement to move beyond “legacy” issues, but notes that it did not admit liability.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.
“I have been using Mortgage Audits Online for a few months and I am very pleased with the work. The audits are very detailed and prepared so a 4th grader can read them. I recommend these guys to all my friends in the business.”
“Thank you…Thank you…Thank you… Your company has created an affordable solution that is spot on as good if not better than audit reports that cost 3-4 times as much.”
“I certainly appreciate your courtesy and thank you in advance for the service. Please know too, that I am recommending Mortgage Audits Online to all of my law associates.”