Attorney General Jim Hood has announced that nearly 300 Mississippians will receive a check stemming from a settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation. The settlement totals $45 million across the country.
A release from General Hood says that from January 2009-December 2012 the company improperly serviced mortgage loans.
Examples of these improper services included but were not limited to: failing to maintain accurate account statements, failing to timely and accurately apply payments made by borrowers, failing to properly process borrowers’ applications for loan modifications, and failing to maintain adequate documentation to determine whether PHH had standing to foreclose.
General Hood says that the settlement shows that they are holding PHH accountable for their wrongdoing and he states that this will bring a new standard to the company in the future.
“Our settlement holds PHH accountable for harms homeowners suffered from improper loan servicing and shows our continued dedication to this area,” said General Hood. “The agreement requires new servicing standards to help ensure that PHH doesn’t repeat conduct that led to improper mortgage servicing and provides financial relief to aggrieved homeowners.”
The settlement agreement requires PHH to adhere to comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states. The settlement does not release PHH from liability for conduct that occurred beginning in 2013.
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 a minimum $285 payment. Approximately 270 Mississippians are eligible for a payment. A settlement administrator will contact eligible payment recipients via U.S. mail at a later date.