Hundreds of Mississippi residents will soon be eligible for lower mortgage payments after a settlement was reached with a New Jersey-based mortgage lender.
According to Attorney General Jim Hood's office, nearly 300 Mississippians are eligible for mortgage payments starting at $285. Officials say the settlement is a result of PHH Mortgage Corporation improperly servicing mortgage loans between Jan. 1, 2009 and Dec. 31, 2012.
Examples of the services PHH improperly managed include failing to maintain account statements, failing to timely and accurately apply payments made by borrowers, failing to properly process borrowers' applications for loan modifications, and failing to maintain adequate documentation to determine whether PHH had standing to foreclose.
Borrowers who were subjected to foreclosures with the company during that period will qualify for a minimum payment of $480. For homeowners who were facing foreclosures during the eligible period but did not lose their home, they will qualify for the $285 payment.
Those homeowners who qualify for the lower payment will be notified via mail in the coming months.
PHH is the nation's largest non-bank residential mortgage service. The settlement agreement requires the company to adhere to comprehensive mortgage servicing standards, conduct audits, and provide audit results to a committee of states. The settlement does not release PHH from liability for conduct that occurred beginning in 2013.
The settlement was reached with PHH by Attorney General Hood, along with 48 other state attorney generals, the District of Columbia, and more than 45 state mortgage regulators.
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