The settlement resolves allegations PHH, the ninth largest non-bank residential mortgage firm, improperly serviced mortgages between January 1st of 2009 through December 31st of 2012. Under the agreement, PHH must adhere to comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states.
“This settlement holds PHH accountable and will provide financial relief to affected Nebraska homeowners,” Attorney General Peterson said in a written statement released by his office.
The $45 million settlement includes $30.4 million in payments to borrowers. Payments also will be made to the state attorneys general who led the investigation and negotiations. A separate payment will be made to state mortgage regulators.
The Attorney General’s office reports about 175 Nebraskans are eligible for payments under the agreement. Borrowers subjected to PHH foreclosures qualify for a minimum $840 payment. Borrowers who faced foreclosures from PHH, but didn’t lose their homes will receive at least $285.