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Company must pay $45 million for home foreclosure actions

On Behalf of | Jan 4, 2018 | Firm News, Home Foreclosure

The mortgage crisis that started roughly a decade ago created hardships for many Florida homeowners and others around the nation. Unfortunately, some companies that seemingly appeared to help consumers in their difficult situations created more problems for those involved. A national financial services corporation was recently ordered to pay $45 million as a settlement for their mortgage servicing and home foreclosure activities.

Every state except one in the country was involved in the settlement, as reported by the Multi-State Mortgage Committee and PHH, a company headquartered in another state that provided mortgage servicing to financial corporations around the world. The settlement covers activities by the company between Jan. 1, 2009 and Dec. 31, 2012. The company has also been ordered to change its mortgage servicing standards.

The complaint against PHH stated that the company had threatened consumers involved in the loss mitigation process with foreclosure. Documents also stated that PHH charged fees that were not authorized throughout the process. The company was also negligent in properly documenting its standing to foreclose as well as responding adequately to consumers’ complaints and questions.

According to the settlement, over $30 million will be paid to homeowners who lost their residences through the foreclosure process with PHH.  The settlement also includes those families that were referred for foreclosure, yet did not lose their homes. Other payments in the lawsuit included amounts for claims administration, negotiations and investigations as well as a payment to state mortgage regulators.

It is unthinkable that a family could lose their home while striving diligently to avoid the home foreclosure process. Anyone facing such hardships should contact a Florida bankruptcy lawyer for assistance. An experienced attorney will work with clients to develop a plan to remain in their homes and to get their finances back on the right track.

Source:, “PHH reaches nationwide settlement over crisis-era mortgage servicing issues“, Ben Lane, Jan. 3, 2018

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