Associated Press via Houston Chronicle | August 11, 2017 MINNEAPOLIS - 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.
Acting U.S. Attorney for Minnesota Gregory Brooker said Tuesday that Mount Laurel, N.J.-based PHH submitted defective loans for government insurance, and that homeowners and taxpayers paid the price.
The government said it incurred "substantial losses" in paying insurance claims on Federal Housing Administration 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. Article here.