The PHH Settlement Agreement: What You Need to Know
In 2018, PHH Mortgage Corporation reached a settlement agreement with state attorneys general and the Consumer Financial Protection Bureau (CFPB) regarding alleged mortgage servicing and foreclosure abuses. As a professional, it`s important to understand the details of this agreement and its impact on both PHH and consumers.
The settlement, which totaled $45 million, resolved claims of improper mortgage servicing and foreclosure practices, including charging unauthorized fees, failing to properly process loan modifications, and submitting inaccurate or incomplete documentation to foreclosure courts. PHH, one of the largest non-bank mortgage servicers in the United States, was accused of these practices between 2009 and 2012.
Under the terms of the agreement, PHH was required to provide loan modifications and other forms of relief to affected borrowers, as well as pay restitution to those who lost their homes to foreclosure. Additionally, PHH was required to implement more comprehensive servicing standards and provide regular reports to the state attorneys general and CFPB to ensure compliance.
As a result of the settlement, PHH was also required to undergo an independent audit of its servicing practices and provide remediation to affected borrowers if any additional issues were identified. This separate audit process is ongoing and is expected to continue for several years.
For consumers who were affected by PHH`s alleged improper practices, the settlement provided some much-needed relief. However, it`s important to note that not all borrowers who lost their homes to foreclosure during the relevant time period were eligible for restitution under the settlement. Eligibility requirements included having been subjected to one of the specific improper practices outlined in the settlement, having lost their home to foreclosure between 2009 and 2012, and having their mortgage serviced by PHH.
As copy editors experienced in SEO, it`s important to understand the broader implications of the PHH settlement agreement. The settlement represented a significant enforcement action taken by the CFPB, which was then headed by Richard Cordray, against a major mortgage servicer. It also highlighted the importance of mortgage servicing standards and the role of state attorneys general in consumer protection efforts.
Overall, the PHH settlement agreement serves as a reminder of the need for transparency, fairness, and accountability in the mortgage servicing industry. While the settlement provided some relief to affected borrowers, it also illustrates the ongoing challenges faced by regulators and consumer advocates in ensuring that mortgage servicers comply with the law and treat borrowers fairly. As copy editors experienced in SEO, it`s important to stay informed on these issues and communicate their importance to readers.