WASHINGTON – In a shocking case of corporate greed, PHH Mortgage Corporation, one of the United States’ largest mortgage loan servicers, has agreed to pay $750,000 to six servicemembers in New Jersey for unlawfully foreclosing on their homes without obtaining the required court orders.
The Justice Department announced the settlement on [Date] in a press release that outlined the company’s alleged violations of the Servicemembers Civil Relief Act (SCRA). According to the investigation, PHH foreclosed on six homes of SCRA-protected servicemembers in violation of the SCRA between 2010 and 2012.
The agreement requires PHH to pay $125,000 to each servicemember whose home was unlawfully foreclosed upon. The company must also provide training to its staff to ensure that servicemembers do not face unlawful foreclosures in the future, and notify the New Jersey U.S. Attorney’s Office of future complaints regarding servicemembers’ rights.
“The brave men and women who serve in our nation’s armed forces frequently are required to deploy and serve overseas with little notice,” said 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.”
PHH Mortgage Corporation, a New Jersey-based company, has agreed to pay $750,000 to six servicemembers for unlawful foreclosures during their active military service.
The Servicemembers Civil Relief Act prohibits foreclosing on the home of a servicemember during active military service and one year thereafter without a court order if the mortgage originated prior to the servicemember’s period of military service.
The New Jersey U.S. Attorney’s Office and the Civil Rights Division of the Justice Department led the investigation, which began in May 2016 after the Justice Department received a complaint through its Servicemembers and Veterans Initiative.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Defendant: PHH Mortgage Corporation
Criminal Charges: Unlawful foreclosure of servicemembers’ homes without obtaining required court orders
City and State: New Jersey
Date: [Date]
Sentence: PHH Mortgage Corporation agreed to pay $750,000 to six servicemembers and provide training to its staff to prevent future unlawful foreclosures
Dollar Amounts: $750,000 (total payment to six servicemembers) and $125,000 (per servicemember)
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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