CHARLESTON — A coalition of other states – including West Virginia – and mortgage regulators, have announced a $45 million settlement with one of the nation’s largest mortgage servicers.
PHH Mortgage Corporation, a New Jersey-based mortgage lender and servicer, reached the agreement with 49 state attorneys general, the District of Columbia and 45 state mortgage regulators.
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.
“Companies that engage in improper business practices cannot be allowed to continue such conduct in West Virginia,” West Virginia Attorney General Morrisey said. “This settlement is an example of our continued efforts to protect consumers and right the wrongs done to individuals by erroneous actions.”
His office said the 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.
Approximately 292 West Virginians are eligible for a payment.
Morrisey's office said borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment. Those who faced foreclosures that PHH initiated during the eligible period, but did not lose their home will receive a minimum $285 payment.
A settlement administrator will contact eligible payment recipients at a later date.
Further details of the amount of money state residents will receive currently is unavailable.