States Impose Penalties, New Business Practices on PHH Mortgage
Posted on Jan 3, 2018 in Latest Department NewsHonolulu – Hawaii joins 47 state financial institution regulators today to announce a legal settlement with PHH Mortgage Corp (NMLS #2726). The settlement will assist borrowers harmed by PHH Mortgage during 2009-2012, due to severe operational deficiencies in mortgage servicing. These deficiencies were identified during a multi-state examination of the company conducted by Arizona, Georgia, Louisiana, Massachusetts and New York.
The settlement:
· Provides $31 million in cash payments for up to 52,000 borrowers who lost their homes to foreclosure (Hawaii had 19 borrowers) from January 1, 2009 to December 31, 2012, or were in the foreclosure process (Hawaii had 48 borrowers) during that period
· Mandates that PHH submit an administrative penalty of $8.8 million to state regulators
· Establishes a set of servicing standards the company must follow going forward
“This settlement demonstrates a core responsibility of state regulators to protect consumers from bad actors and bad business practices,” said Iris Ikeda, Hawaii Commissioner of Financial Institutions.
“With this settlement, we are making it clear that we will not tolerate mortgage servicers that harm consumers in anyway. As part of this settlement, States are requiring corrective actions so that PHH’s future mortgage servicing activity ensures timely and accurate processing of loan payments.”
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The Hawaii Division of Financial Institutions (DFI) ensures the safety and soundness of state-chartered and state-licensed financial institutions, and ensures regulatory compliance by state-licensed financial institutions, escrow depositories, money transmitters, mortgage servicers, mortgage loan originators and mortgage loan originator companies, by fairly administering applicable statutes and rules, in order to protect the rights and funds of depositors, borrowers, consumers and other members of the public. Website: https://cca.hawaii.gov/dfi/. Twitter: @HawaiiDFI
Media Contact:
William Nhieu
Communications Officer
Department of Commerce and Consumer Affairs
Email: [email protected]
Phone: (808) 586-7582
Cell: (808) 389-2788