Attorney General Curtis Hill, along with attorneys general from 49 states plus the District of Columbia, and more than 40 state mortgage regulators, have reached a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.
The settlement resolves allegations that PHH, the nation’s ninth largest non-bank residential mortgage originator and servicer, improperly serviced mortgage loans from January 1, 2009 through December 31, 2012.
The agreement requires PHH to follow comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states.
The $45 million settlement includes $30.4 million in payments to borrowers. The settlement also includes payments to the state attorneys general who helped lead the investigation and negotiations, and state mortgage regulators.
The settlement does not release PHH from liability for any conduct that may have occurred since 2013.
A total pay out to Hoosiers of more than $1 million is expected. Individual payments to eligible individuals could be as low as $285 depending on circumstances.
Approximately 1,500 Hoosier borrowers are eligible for a payment. A settlement administrator will contact eligible recipients at a later date.