Vermont Business Magazine Attorney General Thomas J Donovan, Jr and Department of Financial Regulation Commissioner Michael S Pieciak announced today that they have reached a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation, along with 49 other state Attorneys General and 46 other state financial regulators. Under the settlement, approximately 200 Vermonters may be eligible to receive a payment from a $30.4 million settlement fund, and the State of Vermont will receive an administrative penalty payment of approximately $160,000.
The settlement 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 agreement 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.
The $45 million settlement includes $30.4 million in payments to borrowers, plus additional payments to state attorneys general who helped lead the investigation and negotiations, and an administrative penalty of $8.8 million to state regulators.
Borrowers who lost their homes to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, and borrowers who faced foreclosures that PHH initiated during the eligible period, but did not lose their home, will receive a minimum $285 payment. Approximately 200 Vermonters may be eligible to receive a payment. Vermonters eligible to receive payments from this settlement will be contacted by the settlement administrator with more information later this year.
Source: Vermont AG. Jan 3, 2018