Business ProfileforPHH Mortgage Corporation

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

Ocwen Loan Servicing (OLS) was a limited liability company formed and existing under the laws of the State of Delaware and was authorized to conduct business in the State of California. PHHMC is a New Jersey corporation with its principal place of business in Mount Laurel, New Jersey and is registered  to do business in California. PHHMC is the successor by merger to OLS. 

The  California Commissioner of Financial Protection and Innovation is required to examine the records, documents, and affairs of each CRMLA licensee to ensure compliance with the law.

 In or about October 2019, the Department commenced an examination of OLS under the CRMLA. As part of the examination, the Department found that OLS undercharged certain borrowers by not timely implementing changes in loan terms . OLS had already self-identified and undertaken measures to remediate the issue by notifying affected borrowers that undercharged amounts would be assessed as a non-interest-bearing lump sum payment due at loan maturity or pay off.

Additionally, during the examination OLS reported to the Department that certain borrowers were overcharged as a result of OLS not timely implementing changes in loan terms after the servicing of mortgage loans was transferred to OLS.  OLS had similarly self-identified this issue and undertaken measures to remediate it by issuing refund checks to borrowers with an overcharge.

 Based on the overcharges and undercharges, the Department found that OLS violated Financial Code by failing to maintain policies and procedures designed to ensure accurate and timely disclosures to borrowers, resulting in borrowers receiving periodic account statements that did not accurately disclose interest rates, principal amounts and/or amounts due on mortgages as a result of undercharges and/or overcharges.

The Parties are willing to resolve the matters as follows:

MONETARY RELIEF:

1. Civil Penalties a) The OLS Parties shall pay $2,500,000 to the Department for penalties, costs, and fees;
2. Refund Checks: The OLS Parties shall re-issue refund checks to all borrowers in the Overcharge Report who did not previously cash their overcharge refund check, together with a letter notifying each such borrower of the reason for the refund within 60 days of the Effective Date.

Commencing within sixty days of the Effective Date, the OLS Parties shall provide the Department a monthly report regarding the OLS Parties' compliance with the Order.  The OLS Parties agree to not engage in violations of the applicable state and federal laws.

The Settlement is not to be construed as an admission of any liability or wrongdoing by the OLS. The Parties further acknowledge and agree the Commissioner will bring no further proceedings or actions related to matters resolved by this Order, either under the CRMLA, or any other provision of law, except the Commissioner may bring an action to enforce compliance with the terms of this Order.