Paxton, Other Attorneys General Reach $45M Mortgage Foreclosure Settlement
January 3, 2018 – Attorney General Ken Paxton and 48 other attorneys general reached a $45 million settlement Tuesday with PHH Mortgage Corporation for improperly serviced mortgage loans, according to a press release from Paxton’s office.
The settlement stipulates PHH must follow certain mortgage servicing standards, run audits and furnish audit results. It also pays $30.4 million to borrowers, lawyers’ fees to state attorneys general and payments to state mortgage regulators.
The agreement only applies to loans improperly mortgaged from Jan. 1, 2009 through Dec. 31, 2012. Borrowers whose homes were foreclosed by PPH during this period qualify for payments starting at $840. Those whose homes were not lost but faced foreclosure will receive payments starting at $285.
“This settlement sets up strict requirements for servicing standards to help ensure that PHH can no longer improperly service mortgages,” Paxton stated.
By Jose R. Gonzalez, Houston Chronicle
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