Attorney General Josh Shapiro Announces Settlement with PHH Mortgage for Improperly Servicing Mortgage Loans

January 3, 2018 | Topic: Consumers

Over 2,200 Pennsylvanians may be eligible for $1.2M in Restitution

HARRISBURG — Attorney General Josh Shapiro and 48 other state Attorneys General today announced a $45 million settlement with PHH Mortgage Corporation, which improperly serviced mortgage loans between 2009 and 2012. The settlement includes $30.4 million in restitution for borrowers nationwide, including an estimated $1.2 million for Pennsylvanians.

Borrowers who were subjected to PHH foreclosures during the 3-year period may qualify for a restitution payment of at least $840 and potentially more. Borrowers who faced foreclosures that PHH initiated – but who didn’t lose their homes – may also qualify for restitution payments. Under the terms of the settlement, 2,266 Pennsylvanians are eligible for payments. A settlement administrator will contact eligible homeowners at a later date.

Borrowers who believe they have been subject to deceptive practices by PHH are encouraged to file a complaint with the Office of Attorney General. Impacted consumers can also call 1-800-441-2555 or email

“This settlement holds this mortgage loan provider accountable for harm done to Pennsylvania homeowners whose loans were improperly serviced,” Attorney General Josh Shapiro said. “It also requires change in PHH’s behavior to make sure this company doesn’t repeat the improper conduct that harmed homeowners across the country.”

The settlement resolves allegations that PHH, the nation’s ninth largest non-bank residential mortgage servicer based in New Jersey, improperly serviced mortgage loans by:

  • Failing to timely and accurately apply payments by certain borrowers
  • Failing to maintain accurate account statements and complete loan servicing files
  • Charging unauthorized fees for default-related services
  • Threatening foreclosure and conveying conflicting messages to borrowers engaged in loss mitigation
  • Failing to properly respond to borrowers’ complaints and requests for information and assistance
  • Failing to properly process borrowers’ applications for loan modifications
  • Preparing, executing and notarizing documents with incorrect or incomplete information with courts and government agencies, or otherwise used incorrect or incomplete documents as a part of the foreclosure process.

The agreement requires PHH to adhere to comprehensive mortgage servicing standards, regularly conduct audits, and provide audit results to a committee of states.

“We’re going to ensure impacted Pennsylvania homeowners receive the restitution they’re entitled to,” Attorney General Shapiro said.  “I want them to call or email our Bureau of Consumer Protection. We’re here to help them.”

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