PHH Settles Robosigning Allegations, but More Regulatory Battles Loom

American Banker, January 4, 2018 | Go to article overview

PHH Settles Robosigning Allegations, but More Regulatory Battles Loom


Byline: Brad Finkelstein

PHH Corp. settled allegations of foreclosure process abuses with 49 states that involved "inconsistent signatures" and improper certification of servicing documents.

The Mount Laurel, N.J.-based company will pay $45 million, including $31.5 million that will go to borrowers whose homes were foreclosed on or who were put into foreclosure between Jan. 1, 2009, and Dec. 31, 2012.

The allegations of misconduct by PHH Mortgage, a division of PHH Corp., were raised following a 2010 Multistate Mortgage Committee examination of its servicing activities. The MMC is a joint committee of the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

The examiners alleged PHH failed to exercise proper control over foreclosure documents, allowed unauthorized executions, inconsistent signatures, and improper certification and notarization. In addition, the examinations found deficiencies in other internal controls, loan servicing and mortgage modifications.

PHH did not admit any liability or wrongdoing in the settlement agreement.

"We have agreed to resolve concerns raised by the MMC arising from its servicing examination conducted in 2010 and believe that settling this matter is in the best interest of PHH and its constituents," the company said in a statement. "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 allegations echo alleged misconduct that was pervasive among mortgage servicers during the height of the foreclosure crisis that eventually became known as "robosigning" due to workers being accused of improperly signing foreclosure documents without reviewing their contents or accuracy.

In addition to the monetary settlement, PHH agreed to adopt servicing standards and implement a testing and reporting process to ensure compliance.

"In fact, the servicing standards that we are required to adopt under the terms of the settlement are largely PHH's servicing standards today," the PHH statement reads. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

PHH Settles Robosigning Allegations, but More Regulatory Battles Loom
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.