PHH settles allegations of foreclosing on active duty military members' homes without court order

By Marian Johns | Feb 11, 2019

WASHINGTON, D.C. — PHH Mortgage, one of the nation's largest loan servicers, will pay more than $700,000 as part of a settlement with the U.S. Justice Department (DOJ) over allegations of illegally foreclosing on the homes of servicemembers. 

According to the DOJ, PHH violated the Servicemembers Civil Relief Act (SCRA) when it foreclosed on the homes of active military members without a court order.

“Our men and women in uniform deserve to be able to focus on their job of keeping our country safe without worrying about losing their homes to an unlawful foreclosure,” assistant attorney general Eric Dreiband said in a statement.  “The Civil Rights Division is committed to protecting the rights of our servicemembers from unlawful conduct.”

“The brave men and women who serve in our nation’s armed forces frequently are required to deploy and serve overseas with little notice,” added U.S. attorney Craig Carpenito.  “This office remains resolute in its commitment to honor their personal sacrifices when they do so by ensuring that servicemembers’ rights will be protected, as the law requires, whenever duty calls. This agreement ensures that servicemembers will be compensated for the damages they suffered when their homes were improperly foreclosed upon while they were serving our country.”

The settlement includes PHH paying $750,000 to six servicemembers effected by the company's actions, according to the DOJ.

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