PHH Settles Federal Probe For Unlawful Foreclosure Of Active Military Members

February 7, 2019

PHH  Corp. a New Jersey-based mortgage servicer, will pay $750,000 to settle a federal investigation that claimed it violated the Servicemembers Civil Relief Act (SCRA), when the company unlawfully foreclosed on active military members' homes without court orders.


"The SCRA prohibits foreclosing on the home of a military member during active service and one year thereafter without a court order if the mortgage originated prior to that period of service," according to Philadelphia Business Journal.


"The U.S. Department of Justice said Wednesday that it launched an investigation, handled jointly by the U.S. Attorney’s Office for the District of New Jersey and the Department’s Civil Rights Division, after it received a complaint in May 2016. The investigation revealed that PHH foreclosed on six homes of SCRA-protected military members between 2010 and 2012."


Each service member who was affected by the foreclosures will receive $125,000 from PHH. PHH will also face tighter oversight to make sure that SCRA violations do not occur in the future. 


"This is not the first payout PHH has made since it became part of Ocwen," according to the report. 


"In late October, Pennsylvania Attorney General Josh Shapiro said notification cards were sent to borrowers subjected to PHH foreclosures between 2009 and 2012 to qualify for a restitution payment of at least $840."


To learn more about this settlement, click on the image above

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