PHH Settles NJ Consumer Fraud Probe For $6.2M

Law360, New York (December 4, 2013, 3:53 PM EST) -- PHH Mortgage Corp. will pay $6.25 million to more than 2,000 borrowers and the state of New Jersey to settle allegations that the residential mortgage servicer misled homeowners seeking assistance to keep up with their mortgage payments or avoid foreclosure, Attorney General John J. Hoffman announced Wednesday.

Borrower complaints spurred the state to begin investigating PHH in 2011, and its administrative probe revealed a number of potential violations of the New Jersey Consumer Fraud Act, according to officials. PHH may have provided struggling homeowners with inaccurate...
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