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LAWSUITS NEWS & LEGAL INFORMATION

PHH Mortgage to Pay $45M In Mortgage Servicing Fraud Lawsuit

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This is a settlement for the lawsuit.

Washington, DC: A $45 million settlement has been reached by PHH Mortgage Corp and 49 state attorneys general who sued the company alleging the mortgage servicer committed financial fraud by failing to properly apply payments from borrowers and other loan service deficiencies.

While mortgage servicers do not directly issue home loans, they do collect and process borrower’s payments and are responsible for many anti-foreclosure measures, including loan modifications and other tools for homeowners. The lawsuit alleges that between 2009 and 2012 PHH Mortgage, based in New Jersey, failed in assisting borrowers to avoid foreclosures, failed to process loan modification applications and other vital documents, and did not properly maintain mortgage servicing and other files, among numerous other allegations.

According to the terms of the settlement, filed in the D.C. District Court, PHH will pay $45 million, with $30.4 million of that sum going directly to borrowers. The remainder of the funds will be used to cover costs of each of the 49 state’s investigations. PHH has also agreed to make changes to its servicing practices in its agreement with the Multi-State Mortgage Committee, a panel of state attorneys general and regulators set up to monitor mortgage markets after the 2008 financial crisis.

Notebly, the settlement does not release PHH from any potential liability for any alleged improper conduct from 2013 onward.

New York Attorney General Eric T. Schneiderman’s office reported that an estimated 1,600 New York residents would be eligible for payments. For those who lost their homes due to foreclosure, the payments could begin at $840. For those who did not lose their homes but did go into foreclosures initiated by PHH during the relevant period, they could expect a minimum of $285.

Attorney General Mike DeWine of Ohio has stated that as many as 2,000 residents would be eligible for those payments.

The case is State of Alabama et al v. PHH Mortgage Corp., case number 1:18-cv-00009, in the U.S. District Court for the District of Columbia.

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Published on Jan-3-18

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READER COMMENTS

Posted by

on
I completely agree with the statement above, which states we need to pull together and stop these thieves, there has always been power in numbers. Most people just do not believe they will be heard. Or they are elderly and therefore feel intimidated. The only way to put a stop to these house stealing rip-offs Is to stand up for our rights. They manipulate people with their ability to twist the truth.
even withhold the actual facts all of which if illegal unfair practices. I say to all that have been victim's laws were created to protect us, it is our responsibility to hold them accountable for ignoring the laws.
I am fighting for my best friend of 30yrs he has conquered so much abuse from society and many others due to his birth defects he was a victim of a medication called thiamine. He has lived in his homes his entire life and now they are fraudulently trying to take his house and put him on the street its horrific. I will not let this happen. They owe him for all the stress that has led him to health problems. So, if you are a victim, please contact me I will help you keep what is rightfully yours together we can put an end to these what i refer to has PREDATORS because that is what they are.
Posted by

on
I agree with all the punishment suggestions in this forum! PHH has made so many mistakes on my home and have tried to foreclose can't tell you how many times. The last time they made a mistake I reported them to the Florida AG. Then they sent me to am outside attorney during the pandemic to foreclosure on me. HUD told them they had to dive me a forbearance 6 times and they it ignored out of retaliation. I had to get a congressional inquiry by the Governers office to get them to stop. It took me a year and a half! This is a debt collection company not a mortgage company who should be protecting our life's investment not trying to take it to resale all while traumatizing us. They have been sued for so many unscrupulous things for years I don't know how they are allowed to remain open, maybe we should sur the states for allowing them to abuse us.
Posted by

on
PHH Mortgage are crooks. They have tried for 3 years to foreclose on my mother's one and only property. They keep saying we are defaulting on the loan which is a lie. They should not be in business.
I feel sorry for the elderly that have a reverse mortgage with them and do not have any family fighting for them. My mother would have lost her home by now if it were not for me and my sister fighting for her.
Posted by

on
I had both Ocwen and PHH mortgage and ended up selling home in 2020 and found out I had another loan for 30k that I didn't even know about. ended up losing a lot of money when I sold home. They called me multiple times a day and when husband passed they almost foreclosed my home. Both charged extra on my escrow account when late husband and I did a loan modification. They are crooked. please someone reach out to me. I've moved out of state and did not get any notices on any of these law suits.
Posted by

on
Phh and ocwen owners and sr mgt need to go to prison ....they added 30k to my mortgage (phh got from ocwen) then they point fingers about who did what. I'm so done ....I will be going to the state banking commission and paying every cent I have to attorney to resolve this. How do they sleep at night?
Posted by

on
Attentions Lawyers or anyone’s
When the rules of Laws will become effective or apply to to this
Predatory Lending : PHH Mortgage Company ? How to STOP this
Preying upon customers and homeowners like us. RIpped , Scammed, Cheated on mortgage payments to homeowners who are all sacrificed days in days out to make each payments!
But this PHH Mortgage Co. nothing but a Predatory Lending !
If you people can take Mortgage like PHH to be responsible at all counts please let me know ASAP please. It has been to long ! This PHH Mortgage Co.
Should NOT be in our society any more. LET’S STOP ONCE AND EVER !
Thank you.
Posted by

on
PHH has been ripping me off for years. They take fees out of my on-time mortgage payment then place the remaining balance into a suspense account then report to the Credit bureaus that I am not making my payment in full... One word ILLEGAL... That's fraud... You don't take fees out of payments then inaccurately report no payment was made... I've contacted the United States CFPB as well as my states Attorney General and filed formal complaint.
Posted by

on
This was supposed to be settled in early 2019. I still havenot received any information regarding the settlement or the where-abouts of my personal belongings. I would appreciate any information you might have regarding this.
Thann
k you
Posted by

on
We had a mortgage with PHH did all the necessary work to request forbearance, PHH foreclosed anyway. We filed the necessary small claims paperwork by deadline of January 28 and have not heard anything. We have since divorced and I sent divorce papers stating such.
Please acknowledge receipt of this e mail.
Posted by

on
Ocwen was my mortgage compsny. Recently PHH has taken over. And it already seems to be a nightmare. I am a prepayment plan with Ocwen and I called to see did they have same guidelines as Ocwen I was told no. Never received any information from PHH pertaining to their prepayment plan. I call several time and each time a different case manager tell me something different . Need help before it's too late. Don't want my house to go into foreclosure.
Posted by

on
I would like to be added. Have had PHH mortgage since 2008. Have had a couple of issues with them posting payments, reimbursing my escrow when changing insurance companies, posting extra payments to interest as opposed to principal as I clearly stated, and when I did the mod they screwed me over with the interest rate. I have a flawless payment history with PHH mortgage.
Posted by

on
I have not recieved any information about the settlement which that I would recieve payment by January 19, 2019 .
Posted by

on
Please send me information on the lawsuit because p h h mortgage pay are 2016 taxes and we're in the middle of foreclosure right now. if you can without us to the lawsuit
Posted by

on
I have had PHH mortgage since 2003.
In 2010 I made a payment which they said they never received but the money was taken out of my account. I tried to pay them again but would not accept the payment.I then paid a mortgage lawyer. I then was able to refinance it So now most go's to pay the interest and I lost7 years of paying down the interest
Posted by

on
Phh has been a nightmare for us our settlement docs say no PMI , the good faith estimate said 116 then they charged us 333. Per month in PMI, they delayed our home mod. Told us not to pay or we wouldn't even be considered for a loan mod. Then the foreclosure papers started rolling in while at same time being considered for a loan mod. Which is dual tracking. I have proof of all of this. Please help
Posted by

on
I purchased my home in 2006 with a good down payment, and I made several updates to the home, including a new HVAC system, water heater, and much more. In 2009, the HARP program was announced, and my 82-year-old neighbor encouraged me to apply. I did so and spent the next 2 1/2 years being ignored by PHH, the mortgage service. They did not apply any of my payments to the mortgage principal, saying they were "waiting for me to be approved" for the HARP loan modification. Eventually, they approved me, but they added $66,000 to the mortgage principal because of two foreclosure actions they attempted. I want to be added to this class-action lawsuit. I lost my home because of the higher monthly payment in 2012.
Posted by

on
The same happened to me in 2012. I was 40 days late on a payment due to the loss of my Mom. SunTrust sold my loan to Fannie Mae (servicer was Seteras) They all refused to talk to me because property was in my Mom's name but I had "Right of Survivorship" which SunTrust finally acknowledged 2 days after they sold loan. Fannie Mae refused to speak to me or take payments and adjust escrow account but did send paperwork to me to fill out for help with foreclosure. Gave me the run around then moved the 2 people that I had spoken to. I had perfect payment history before any of this and had put down $35,000.00 when purchased. They said they sold my property exactly 20 mins before I filed bankruptcy. I was on the phone with their lawyers telling them I was at bankruptcy office. That was my inheritance and I am awaiting a liver transplant for a disease that I received from a blood transfusion from the same hospital who now refuses to help. I feel wronged by so many since 2000. Please help. I need the money yes but, I want to know that justice is not just a baseball player BEFORE I die.
Posted by

on
PHH Mortgage contacted me after the Hurricane hit in Sept 2017 in South Florida and said since we affected that we could qualify for "Forbearance" They told me to stop paying my mortgage. I did what they said and stopped paying. They told me that the payments would be added on at the end of my mortgage. January comes along, and they said I didn't qualify and they would put me on a payment plan. They tacked on an extra $600 to my mortgage! it is a struggle to do so. If I don't pay the will foreclose on me. They are also report me to my credit report for behind payments. I did all this because they told me to stop payments while I repaired my house. Now their taking advantage of me. Please help
Posted by

on
I am victim of foreclosure, documented well in your second paragraph, time frame of 2010.
Understood foreclosure was running rampid. & kept patient until foreclosure notice was response to modification request several months later.
Couldn't get help anywhere as resources were already overwhelmed and/or out of money for help. Wound up involving HUD & still lost out over $47 a month. No program under HUD or anywhere else.
Sad, sad, sad! And heartbreaking...
Posted by

on
In foreclosure status now with this mortgage company for 5 payments.
Posted by

on
My loan has been being serviced by PHH Mortgage Services from 2005 to present, I would like to be included in this lawsuit as well.
Posted by

on
Please keep me posted as I had them for many years until Ocwen took my loan.
Posted by

on
Please add us to the class action. We had PHH Mortgage for years until SPS took us over.
Posted by

on
I had the same thing happen to us. How do we file to be part of the settlement
Posted by

on
Please verify me with this informations , if you can legal help me about PHH Morgage fraud lawsuit filed that you have in the website here. I had filed claims against this PHH Mrtg. Company to many places but never heard any thing back till now on your website. I’m one of so many victims got ripped off by this PHH Mortgage Com. Since 2013
I sent in all kinds of infos to every where could not get any anerwers like my case got swept away under the rug. Look like I’m just a little people has no voice, got ripped off for years and thousands of dollars. It’s sadly but I swallowed and struggleling eventually. I hope now that some one can help me
Get the justice and find my head above the water one day soon. Please help ! Thank you
Look forwards to hear from you soon

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