PHH Corp. subsidiary PHH Mortgage Corp. will pay about $45 million in aggregate to settle claims of alleged misconduct related to its servicing of single-family residential mortgages.
New York Attorney General Eric Schneiderman's office announced that nine states, the District of Columbia and 45 state mortgage regulators signed onto the agreement.
The settlement resolves findings related to legacy mortgage servicing activities that took place between Jan. 1, 2009, and Dec. 31, 2012, that were subject to a multistate mortgage loan servicing examination. The settlement sum includes $30.4 million in payments to borrowers, plus additional payments to states and mortgage regulators for costs and fees related to the investigation.
Borrowers who were subject to PHH foreclosures during the eligible period will qualify for minimum payments of $840. Those who faced foreclosures that PHH initiated during the eligible period but did not lose their homes will receive minimum payments of $285.