PHH Mortgage to Pay $45.2 Million to Resolve 49 State, DC Suit

PHH Mortgage Corp. agreed to pay $45.3 million and institute reforms including quarterly reports to state attorneys general to settle a nearly nationwide lawsuit challenging its servicing of single-family residential mortgages.

The company’s “misconduct resulted in premature and unauthorized foreclosures, violation of homeowners’ rights and protections, and the use of false and deceptive affidavits and other documents,” according to a complaint filed in a Washington federal court Jan. 3 by attorneys general representing 49 states and the District of Columbia.

A consent judgment against the Mount Laurel, N.J.-based company was filed minutes later. Only the state of New Hampshire was ...