Nevada Attorney General Adam Paul Laxalt, along with attorneys general from 49 states and the District of Columbia, as well as more than 40 state mortgage regulators, announced a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corp.
The settlement resolves allegations PHH, the nation’s ninth largest non-bank residential mortgage originator and servicer, improperly serviced mortgage loans from Jan. 1, 2009 through Dec. 31, 2012. The settlement doesn’t release PHH from liability for any conduct that may have occurred since 2013. Under the terms of the agreement, PHH is required to follow comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states. Nevada will receive $390,000 in the settlement.
“This settlement covers an estimated 51,476 aggrieved borrowers nationwide whose loans were serviced by PHH,” said Laxalt. “Those who were improperly serviced by this lender will be eligible for payment, while additional imposed servicing standards will ensure that future borrowers are treated fairly.”
Approximately 1,009 Nevada borrowers may be eligible to receive a payment from a national $30.4 million fund created for payments to borrowers. Borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, and borrowers who faced foreclosures PHH initiated during the eligible period, but didn’t lose their home, will receive at least $285. Eligible recipients will be contacted by a settlement administrator at a later date.
All 50 states and the District of Columbia participated in this settlement. Senior Deputy Attorney General Sheri Forbes of the Attorney General’s Bureau of Consumer Protection represented Nevada in this matter.