CARSON CITY, NV (KXNT) – On Wednesday, Nevada Attorney General Adam 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 dollar 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 settlement does not release PHH from liability for nay conduct that may have happened 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. As a result of Nevada’s participation in the investigation and negotiations of this settlement, the State will receive $390,000.
“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, Laxalt said.
About 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 that PHH initiated during the eligible period, but did not 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.