Washington, DC: A $45 million settlement has been reached by PHH Mortgage Corp and 49 state attorneys general who sued the company alleging the mortgage servicer committed financial fraud by failing to properly apply payments from borrowers and other loan service deficiencies.
While mortgage servicers do not directly issue home loans, they do collect and process borrower’s payments and are responsible for many anti-foreclosure measures, including loan modifications and other tools for homeowners. The lawsuit alleges that between 2009 and 2012 PHH Mortgage, based in New Jersey, failed in assisting borrowers to avoid foreclosures, failed to process loan modification applications and other vital documents, and did not properly maintain mortgage servicing and other files, among numerous other allegations.
According to the terms of the settlement, filed in the D.C. District Court, PHH will pay $45 million, with $30.4 million of that sum going directly to borrowers. The remainder of the funds will be used to cover costs of each of the 49 state’s investigations. PHH has also agreed to make changes to its servicing practices in its agreement with the Multi-State Mortgage Committee, a panel of state attorneys general and regulators set up to monitor mortgage markets after the 2008 financial crisis.
Notebly, the settlement does not release PHH from any potential liability for any alleged improper conduct from 2013 onward.
New York Attorney General Eric T. Schneiderman’s office reported that an estimated 1,600 New York residents would be eligible for payments. For those who lost their homes due to foreclosure, the payments could begin at $840. For those who did not lose their homes but did go into foreclosures initiated by PHH during the relevant period, they could expect a minimum of $285.
Attorney General Mike DeWine of Ohio has stated that as many as 2,000 residents would be eligible for those payments.
The case is State of Alabama et al v. PHH Mortgage Corp., case number 1:18-cv-00009, in the U.S. District Court for the District of Columbia.
I purchased my home in 2006 with a good down payment, and I made several updates to the home, including a new HVAC system, water heater, and much more. In 2009, the HARP program was announced, and my 82-year-old neighbor encouraged me to apply. I did so and spent the next 2 1/2 years being ignored by PHH, the mortgage service. They did not apply any of my payments to the mortgage principal, saying they were "waiting for me to be approved" for the HARP loan modification. Eventually, they approved me, but they added $66,000 to the mortgage principal because of two foreclosure actions they attempted. I want to be added to this class-action lawsuit. I lost my home because of the higher monthly payment in 2012.
Posted by B.C. Davis
The same happened to me in 2012. I was 40 days late on a payment due to the loss of my Mom. SunTrust sold my loan to Fannie Mae (servicer was Seteras) They all refused to talk to me because property was in my Mom's name but I had "Right of Survivorship" which SunTrust finally acknowledged 2 days after they sold loan. Fannie Mae refused to speak to me or take payments and adjust escrow account but did send paperwork to me to fill out for help with foreclosure. Gave me the run around then moved the 2 people that I had spoken to. I had perfect payment history before any of this and had put down $35,000.00 when purchased. They said they sold my property exactly 20 mins before I filed bankruptcy. I was on the phone with their lawyers telling them I was at bankruptcy office. That was my inheritance and I am awaiting a liver transplant for a disease that I received from a blood transfusion from the same hospital who now refuses to help. I feel wronged by so many since 2000. Please help. I need the money yes but, I want to know that justice is not just a baseball player BEFORE I die.
Posted by Adriana Castrillon
PHH Mortgage contacted me after the Hurricane hit in Sept 2017 in South Florida and said since we affected that we could qualify for "Forbearance" They told me to stop paying my mortgage. I did what they said and stopped paying. They told me that the payments would be added on at the end of my mortgage. January comes along, and they said I didn't qualify and they would put me on a payment plan. They tacked on an extra $600 to my mortgage! it is a struggle to do so. If I don't pay the will foreclose on me. They are also report me to my credit report for behind payments. I did all this because they told me to stop payments while I repaired my house. Now their taking advantage of me. Please help
Posted by Cheryl Rector
I am victim of foreclosure, documented well in your second paragraph, time frame of 2010.
Understood foreclosure was running rampid. & kept patient until foreclosure notice was response to modification request several months later.
Couldn't get help anywhere as resources were already overwhelmed and/or out of money for help. Wound up involving HUD & still lost out over $47 a month. No program under HUD or anywhere else.
Sad, sad, sad! And heartbreaking...
Posted by Bernice Townsend
In foreclosure status now with this mortgage company for 5 payments.
Posted by L Leaver
My loan has been being serviced by PHH Mortgage Services from 2005 to present, I would like to be included in this lawsuit as well.
Posted by Rosalind Rasheed
Please keep me posted as I had them for many years until Ocwen took my loan.
Posted by David & Sharon Bailey
Please add us to the class action. We had PHH Mortgage for years until SPS took us over.
Posted by Lisa Barkley
I had the same thing happen to us. How do we file to be part of the settlement
Posted by Adisak Vacha
Please verify me with this informations , if you can legal help me about PHH Morgage fraud lawsuit filed that you have in the website here. I had filed claims against this PHH Mrtg. Company to many places but never heard any thing back till now on your website. I’m one of so many victims got ripped off by this PHH Mortgage Com. Since 2013
I sent in all kinds of infos to every where could not get any anerwers like my case got swept away under the rug. Look like I’m just a little people has no voice, got ripped off for years and thousands of dollars. It’s sadly but I swallowed and struggleling eventually. I hope now that some one can help me
Get the justice and find my head above the water one day soon. Please help ! Thank you
Look forwards to hear from you soon
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