By Samuel Mattison
Alabama Political Reporter
Alabama, along with 48 other states and the District of Columbia, reached a settlement with mortgage company PHH Mortgage Corporation for $45 million in an ongoing lawsuit related to practices by the company.
The company was alleged to have practiced multiple violations including unauthorized fees and mishandling of payment processes between 2009 and 2012. In a statement from the company on Wednesday, they admitted no wrongdoing in agreeing to settle the case.
“Our decision to resolve this legacy matter under the terms of the settlement agreement and consent orders is not an admission of liability or that we violated any applicable laws, regulations or rules governing the conduct and operation of our Servicing business during the relevant time frame,” the statement read.
Alabama Attorney General Steve Marshall, who joined the lawsuit against PHH, announced the settlement on Wednesday.
“I am pleased that this settlement will return funds to consumers in Alabama and nationwide who may have been harmed by improper mortgage loan servicing,” Marshall said. “It is important that this agreement also requires new standards to help keep these problems from recurring.”
In Alabama, potentially 920 customers of PHH will be eligible for compensation.
On the scale of the payout, those who had homes foreclosed on will be eligible for a minimum payment of $840, and those whose homes were not foreclosed on will receive a minimum payment of $285. Those eligible will be contacted soon by a national settlement administrator.