The attorneys general of 49 states and Washington, D.C., reached a multi-million-dollar settlement with a mortgage lender accused of improperly servicing loans.
PHH Mortgage Corporation of New Jersey agreed to a $45-million settlement with the attorneys general of all but one state and more than 40 state mortgage regulators, according to a press release from Ohio Attorney General Mike DeWine’s office.
DeWine, who is running for the Republican nomination for Ohio governor, was one of the 49 attorneys general PHH settled with.
More than $30 million of the settlement has been designated for payments to affected borrowers, and about 2,000 Ohio borrowers are expected to qualify for payments totaling more than $1.2 million, according to DeWine’s office.
Borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, while eligible borrowers who faced PHH-initiated foreclosures but did not lose their home will qualify to receive a minimum $285 payment, according to the Ohio AG.
Elligible recipients will be contacted by a settlement administrator.
“Mortgage servicing abuses harmed thousands of Ohioans and put numerous families into foreclosure,” DeWine said in a prepared statement. “This settlement continues our work to help affected borrowers receive compensation and to prevent further abusive conduct through new servicing standards.”