A settlement agreement was reached today with 800 New Yorkers for a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.
The settlement agreement reached by 49 states, the District of Columbia and 45 state mortgage regulators resolves allegations that PHH, the nation’s ninth largest non-bank residential mortgage servicer, improperly serviced mortgage loans from January 1, 2009 through December 31, 2012. The $45 million settlement includes $30.4 million in payments to borrowers, and additional payments to states and mortgage regulators for costs and fees related to the investigation.
Over 800 New York borrowers applied for payments. Rust Consulting, the settlement administrator, issued checks to claimants on Friday, May 31, 2019. Borrowers who lost their homes to foreclosure during the eligible period will receive approximately $1,500, and borrowers referred (but did not ultimately lose their home) to foreclosure will receive approximately $540. Total payments to New York State borrowers exceeds $666,000.
The settlement agreement also 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.
Attorney General Letitia James made the announcement.
“Today, homeowners who were unfairly and unwittingly victimized receive a piece of justice that they deserve,” said Attorney General Letitia James. “It is unfortunate that New York homeowners were victimized by improper mortgage servicing in the first place, but are at least now receiving the financial compensation owed to them. We will continue to use every resource at our disposal to reverse the damaging practices that helped to create the foreclosure crisis, and hold bad-acting mortgage companies accountable.”
“Empire Justice Center applauds Attorney General Letitia James for representing New York homeowners in the recent multi-state settlement with PHH Mortgage Corporation,” said Kirsten Keefe, Senior Attorney and Program Director for HOPP Anchor Partner Program at the Empire Justice Center. “The settlement requires PHH to clean-up its mortgage servicing practices so that they help, rather than harm homeowners. In addition, over 800 New Yorkers will share in a total of cash payments of more than $660,000. Fortunately in New York State, many homeowners who might have otherwise lost their homes because of the misconduct of PHH, received assistance from housing counseling and legal service providers funded through the Attorney General’s Homeowner Protection Program (HOPP) and so remain in their homes. We are very fortunate to have an Attorney General who is continuing to press for the rights of New York’s homeowners and communities.”
“We commend the Attorney General’s office for holding mortgage servicer’s accountable for their actions to protect New Yorker’s homes, which is their largest and most important asset,” said Susan Boss, Executive Director of The Housing Council at PathStone. “Along with the A.G’s office, we will continue to advocate for all New York homeowners.”
“We are thankful to Attorney General James for her dedicated support of New York homeowners,” said Christie Peale, CEO and Executive Director of the Center for NYC Neighborhoods. “This settlement provides direct compensation to hundreds of families, some of whom lost their homes to foreclosure during the financial crisis. Just as importantly, it shows that New York State will hold other mortgage lenders and servicers accountable for fully complying with all servicing regulations, and treating homeowners equitably.”
The case was handled Deputy Bureau Chief Laura J. Levine under the supervision of Bureau Chief Jane M. Azia in the Consumer Frauds and Protection Bureau, and Executive Deputy Attorney General of Economic Justice Christopher D’Angelo.
Im in NH and need an attorney bad! I pay the amounts phh tells me to and then I get all these other fees and Im back to owing then another $5000! Does anyone know where I can get an attorney to take them on before I to lose my house?!
I need help phh not applying my payments to my mortgage I was 4 payments behind I have been making almost double my mortgage payment on a forbearance program now I am 8 months behind they are trying to take my home help
Hello, I am so surprised for this news !
I am one of the victims here who live in NJ. I have been with this PHH for decade 2006
I am so desperate looking for any lawyers who can help me with PHH Mortgage Lending
Frauds for years. Who can help please let me know. I filed claims with NJ Attorney General
Office but it went under the rugs. Nothings even on this A.G. Announces payments
To PHH customer I m in the lawsuit but did not a get any pennies !
It so sad now I m just up to the points I need something to be changed.
I has been ripped off , scammed , stolen by the PHH Mortgage years till now.
I want to get justice. I CAN NOT let this PHH mortgage ripped my life’s my whole family
Down to dumpster or grave yard please. HELP ! Please !
I am having the same issues with them. They continually raise my mortgage payment (I signed with Ocwen originally) and it takes 1.5 hours to get a hold of them. I have just submitted a complaint to my state Attorney General.
I sent papers in and never got tedponse in the state of michigan i need to know why we didnt get check
Thankful for sharing this useful post!
I am currently in foreclosure with PHH morgage for the second time in three years. I paid 13,331.45 to pay currant on the first foreclosure. On the second they say I have to pay close to 9,000 to keep my home only 4,028.00 in back payments. I new something was going on! THANKS NEW YORK. YOURS TRULY ILLINOIS!
Dan, have you heard anything?