Arizona, 48 other states reach $45 million settlement with PHH Mortgage
PHOENIX — More than 2,000 Arizona families are expected to receive settlement payments from New Jersey-based mortgage corporation PHH following a settlement agreement.
Arizona Attorney General Mark Brnovich tweeted about the settlement on Wednesday afternoon.
— Mark Brnovich (@GeneralBrnovich) January 3, 2018
Brnovich was pleased that justice will be served for many families in the state.
“Predatory mortgage servicing abuses put thousands of Arizona families into foreclosure,” said Brnovich in a release.
The infractions committed by PHH include charging unauthorized fees, failing to apply borrowers’ payments on time, threatening foreclosure on borrowers engaged in loss mitigation and failing to keep proper foreclosure documentation.
The crimes listed against PHH were cited from 2009 to 2012 and leaves the company still liable for conduct that has occurred since 2013. PHH is the nation’s ninth-largest mortgage lender.
“Our settlement holds PHH accountable and requires new servicing standards to help ensure that PHH won’t harm consumers again,” said Brnovich.
As a result of the settlement, PHH will be forced to provide audit results to a committee of states and adhere to comprehensive mortgage servicing standards.
Approximately $30 million out of the $45 million settlement will be distributed through payments to nearly 52,000 affected borrowers nationwide.
Minimum payments to those who were subjected to foreclosures start at $840. Those who faced foreclosures initiated by PHH but did not lose their homes were eligible for a minimum payment of $285.
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