PHH Mortgage Corporation

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PHH Mortgage Corporation

Basic information
Founded	2008
Type	Subsidiary
Industry	Mortgages
Official website	https://www.phhmortgage.com/

PHH Mortgage Corporation is a subsidiary of Onity Group, Inc., a privately held mortgage servicer and lender based in Florida. As of June 10, 2024, Onity Mortgage has been established as a dba (doing business as) of PHH Mortgage.

Consumer impact summary

PHH Mortgage Corporation, a non-bank residential mortgage servicer, has faced multiple allegations related to improper loan servicing practices, impacting borrowers across the United States. The company has been accused of failing to properly apply borrower payments, charging unauthorized fees, and mishandling loan modification requests. In some cases, PHH provided misleading information to homeowners facing foreclosure, and in others, it failed to maintain accurate records or oversee third-party vendors involved in servicing and foreclosure processes.

These practices have led to financial hardship for many homeowners, with some experiencing delays or miscommunications that resulted in foreclosures or loss of modification opportunities. In response to these allegations, PHH has reached settlements, including restitution for affected borrowers and commitments to adopt improved servicing standards. Despite these actions, the company’s practices have raised concerns about transparency, consumer protection, and the treatment of financially struggling homeowners.

Incidents

$45 Million Multi-State Settlement (2018)

In a multi-state settlement announced by Attorney General Christopher S. Porrino, New Jersey reached a $45 million agreement with PHH Mortgage Corporation to resolve allegations of improper mortgage loan servicing. The settlement, which includes more than 45 states and the District of Columbia, addresses claims that PHH Mortgage failed to properly service loans over a four-year period.

Between January 1, 2009, and December 31, 2012, PHH Mortgage Corporation was accused of engaging in improper mortgage servicing practices, including: Alleged improper mortgage servicing practices, including:

• Misapplying borrower payments and maintaining inaccurate account statements.
• Charging unauthorized fees for default-related services.
• Providing conflicting and misleading information to borrowers facing foreclosure.
• Failing to respond adequately to borrower complaints and loan modification requests.
• Mishandling loss mitigation applications and documentation.
• Lacking proper loan servicing records and foreclosure documentation.
• Inadequately supervising third-party vendors involved in servicing and foreclosure.
• Submitting foreclosure documents with inaccurate or incomplete information.
• Using improperly executed affidavits in foreclosure proceedings.
• Lacking a structured process for document preparation, execution, and notarization in foreclosure cases.

$6.25 Million Consumer Fraud Act Settlement (2011)

In a settlement announced by Acting Attorney General John J. Hoffman, New Jersey reached a $6.25 million agreement with PHH Mortgage Corporation to resolve allegations that the company misled financially struggling homeowners seeking loan modifications or assistance to avoid foreclosure.