Michigan to Impose Penalties, New Business Practices on PHH Mortgage
(LANSING) Financial regulators from 47 states today announced a legal settlement with PHH Mortgage Corp (NMLS #2726). The settlement will assist borrowers harmed by PHH Mortgage during 2009-2012, due to severe operational deficiencies in mortgage servicing. These deficiencies were identified during an examination of the company conducted by Arizona, Georgia, Louisiana, Massachusetts and New York.
- Provides $31 million in cash payments for up to 52,000 borrowers (2,800 Michigan consumers) who lost their homes to foreclosure from January 1, 2009 to December 31, 2012, or were in the foreclosure process during that period.
- Mandates that PHH pay an administrative penalty of $8.8 million to state regulators ($159,967 to Michigan’s regulator).
- Establishes a set of servicing standards the company must follow going forward.
“With this settlement, we are saying that states will not tolerate mortgage servicers that harm consumers by failing to process mortgage payments according to the law. As part of this settlement, states are requiring corrective actions so that PHH’s future mortgage servicing activity ensures timely and accurate processing of loan payments,” said Michigan Department of Insurance and Financial Services (DIFS) Director Patrick McPharlin.
Cash payments will be made through a third-party Settlement Administrator which will be retained within 30 days of this announcement.
For more information about this order and for continued up-to-date information on how to file a claim against PHH, please visit the DIFS website at www.michigan.gov/difs. For more information about DIFS or the services provided visit the DIFS website, follow them on Twitter or “Like” them on Facebook.