Mortgage lender PHH agrees to pay $74 million settlementStaff Writer | August 9, 2017
Federal prosecutors in Minnesota say PHH Corp. and two subsidiaries have agreed to pay over $74 million to settle allegations they violated standards for underwriting government-backed mortgages.
Investment Federal prosecutors in Minnesota
The settlement includes $65 million for alleged violations involving loans insured by the Federal Housing Administration, and nearly $9.5 million for loans guaranteed by the Department of Veterans Affairs.
The government says it incurred "substantial losses" in paying insurance claims on the FHA loans. About $9 million will go to a whistleblower who formerly worked for PHH.
PHH says it settled without admitting liability to avoid the distraction and expense of litigation. ■