PHH Reaches Settlement With U.S. DoJ On Certain Mortgage Loans

(RTTNews) - PHH Corp.(PHH) said that it reached settlement agreements with the U.S. Department of Justice on behalf of the Department of Housing and Urban Development and separately with the DOJ on behalf of the U.S. Department of Veteran Affairs and the Federal Housing Finance Agency to resolve certain previously disclosed matters regarding legacy mortgage origination and underwriting activities.

The settlement agreements cover certain mortgage loans insured by the Federal Housing Administration during the period between January 1, 2006 and December 31, 2011, certain mortgage loans insured by the VA, and certain mortgage loans sold to Fannie Mae and Freddie Mac.

Under the terms of the agreements, PHH will pay approximately $75 million in aggregate to the DOJ. During the second quarter of 2017, the Company increased its recorded liability for legal and regulatory reserves by $13 million, reflecting adjustments for these settlements and provisions for other matters. These settlements are included in the Company's recorded liability as of June 30, 2017.