Nevada, 49 other states, reach settlement with mortgage lender | nnbusinessview.com

Nevada, 49 other states, reach settlement with mortgage lender

Special to the NNBW

Nevada Attorney General Adam Paul Laxalt, along with attorneys general from 49 states and the District of Columbia, as well as more than 40 state mortgage regulators, announced a $45 million settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation.

The settlement resolves allegations that PHH, the nation's ninth largest non-bank residential mortgage originator and servicer, improperly serviced mortgage loans from January 1, 2009 through December 31, 2012. The settlement does not release PHH from liability for any conduct that may have occurred since 2013. Under the terms of the agreement, PHH is required to follow mortgage servicing standards, conduct audits, and provide audit results to a committee of states.

Nevada will receive $390,000 as part of the settlement.

Approximately 1,009 Nevada borrowers may be eligible to receive a payment from a national $30.4 million fund created for payments to borrowers. Borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, and borrowers who faced foreclosures that PHH initiated during the eligible period, but did not lose their home, will receive at least $285. Eligible recipients will be contacted by a settlement administrator at a later date.

Senior Deputy Attorney General Sheri Forbes of the Attorney General's Bureau of Consumer Protection represented Nevada in this matter.