JEFFERSON CITY, Mo. - Missouri Attorney General Josh Hawley announced on Thursday that his office helped reach a $45 million settlement with a New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.
PHH is the nation's 9th largest non-bank residential mortgage originator and servicer. The company was accused of servicing mortgage loans from January 2009 through December 2012.
"Home ownership is at the center of the American dream, and my office will take action against companies whose illegal business practices would frustrate that dream," Hawley said. "This settlement holds PHH to account for its improper loan servicing practices and demonstrates our continued dedication to fighting bad business practices. The agreement not only provides financial relief to aggrieved homeowners but also requires PHH to adhere to comprehensive servicing standards to help ensure that PHH no longer engages in improper mortgage servicing."
The $45 million settlement includes $30.4 million in payments to borrowers. The settlement also includes payments to the state attorney general who helped lead the investigation.
Borrowers who were subjected to the foreclosures will qualify for a payment. Approximately 1,330 Missourians are eligible for a payment.