Commonwealth of Virginia
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HERRING, STATE AGs AND MORTGAGE REGULATORS REACH $45 MILLION SETTLEMENT WITH PHH MORTGAGE CORPORATION
~ Approximately 1,050 Virginians eligible for $630,000 in compensation ~
RICHMOND (January 3, 2018)-Approximately 1,050 Virginia borrowers are expected to receive compensation totaling more than $630,000 as part of a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation. Attorney General Mark R. Herring, along with attorneys general from 48 other states plus the District of Columbia and more than 40 state mortgage regulators, reached the settlement, which resolves allegations that PHH improperly serviced mortgage loans from January 1, 2009 through December 31, 2012. The settlement includes $30.4 million in payments to borrowers and requires PHH to follow comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states.
"The effects of the mortgage and foreclosure crisis continue to ripple through our economy, our communities, and the lives of our citizens," said Attorney General Herring. "We will remain committed to holding mortgage companies accountable for harms homeowners suffered from improper loan servicing, especially improper foreclosures. The agreement requires new servicing standards to help ensure that PHH doesn't repeat conduct that led to improper mortgage servicing, and to provide financial relief to Virginians who were hurt."
Borrowers who were subjected 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 who did not lose their home, will receive a minimum $285 payment. Approximately, 1,071 Virginians are eligible for a payment, including 600 Virginians who qualify as foreclosed borrowers, and 471 who qualify as referred borrowers. A settlement administrator will contact eligible payment recipients at a later date.
The agreement will be filed as a Consent Judgment in the U.S. District Court for the District of Columbia. The Virginia aspects of this multi-state matter are being handled by the Predatory Lending Unit of Attorney General Herring's Consumer Protection Section. The Unit was established as a part of Attorney General Herring's reorganization of his Consumer Protection Section, which now includes a focus on predatory lending in addition to deceptive conduct, anti-trust matters, charitable solicitation, and more.
During Attorney General Herring's administration, the Attorney General's Consumer Protection Section has recovered more than $234 million in relief for consumers and payments from violators.
For additional information on the settlement or to file a complaint about a consumer protection matter, please contact Attorney General Herring's Consumer Protection Section:
By phone: (800) 552-9963