FOR IMMEDIATE RELEASE
NEWS RELEASE
January 3, 2018
For More Information, contact:
Steve Marshall
Mike Lewis (334) 353-2199
Joy Patterson (334) 242-7491
Alabama Attorney General
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AG STEVE MARSHALL ANNOUNCES $45 MILLION MULTI-
STATE SETTLEMENT WITH PHH MORTGAGE CORPORATION
(MONTGOMERY)–Attorney General Steve Marshall today announced that he
and 48 other state attorneys general, the District of Columbia and more than 45 state
mortgage regulators have reached a $45 million 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 servicer, improperly serviced mortgage loans from January 1,
2009, through December 31, 2012. Approximately 920 consumers in Alabama may be
eligible for compensation and will be contacted in the future by a national settlement
administrator who will be chosen and retained by the multi-state group’s executive
committee.”
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.
The agreement also 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.
“I am pleased that this settlement will return funds to consumers in Alabama
and nationwide who may have been harmed by improper mortgage loan servicing,”
said Attorney General Marshall. “It is important that this agreement also requires new
standards to help keep these problems from recurring.”
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501 Washington Avenue * Montgomery, AL 36104 * (334) 242-7300
www.ago.state.al.us
