FRANKFORT, Ky. (WTVQ) – Nearly 550 Kentuckians who faced foreclosure on their homes from New Jersey-based PHH Mortgage Company are being encouraged to sign-on to a multi-state settlement against the company by the Kentucky Attorney General’s Office.
The deadline is January 28, 2019.
The Kentucky Attorney General’s Office says a third-party administrator handling payments for eligible Kentuckians mailed final notices December 21, 2018.
A total of 49 state attorneys general, the District of Columbia and over 45 state mortgage regulators reached the $45 million settlement earlier this year with mortgage lender and servicer PHH Mortgage Corporation, the nation’s ninth largest non-bank residential mortgage servicer.
The settlement resolves allegations that PHH improperly serviced single-family residential mortgage loans from Jan. 1, 2009, through Dec. 31, 2012.
Allegations of servicing improprieties included, but were not limited to, failing to timely and accurately apply payments made by borrowers; charging unauthorized fees for default-related services; and failing to properly process borrowers’ applications for loan modifications, according to the Attorney General’s Office.
The $45 million settlement includes $30.4 million in payments to borrowers.
In Kentucky, 548 borrowers are eligible for a payment:
- A total of 300 who lost their property – 66 Kentuckians in 2009; 80 Kentuckians in 2010; 97 Kentuckians in 2011; and 57 Kentuckians in 2012. These Kentuckians will qualify for a minimum $840 payment from the settlement.
- A total of 248 whose foreclosures had not been finalized – 28 Kentuckians in 2009; 55 Kentuckians in 2010; 62 Kentuckians in 2011; and 103 Kentuckians in 2012. These Kentuckians will receive a minimum $285 payment.
The settlement requires PHH to adhere to comprehensive mortgage servicing standards, conduct audits and provide audit results to a committee of states, according to the Attorney General’s Office.
The settlement does not release PHH from liability for conduct that occurred beginning in 2013.
Kentuckians who believe they might be a part of this settlement or have general questions may contact the Kentucky Attorney General’s Office at 502-696-5300.
The number of residents from bordering states impacted from the settlement includes: Illinois: 2,816; Indiana: 1,533; Missouri: 1,330; Ohio: 2,079; Tennessee: 815; Virginia: 1,071; West Virginia: 292.