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PHH to pay $74.5 million to resolve U.S. mortgage probes

PHH

REUTERS-

Mortgage company PHH Corp will pay nearly $74.5 million to resolve claims it generated defective loans that the federal government then insured and Fannie Mae and Freddie Mac bought, The U.S. Justice Department said on Tuesday.

The deal with Mount Laurel, New Jersey-based PHH follows settlements between the Justice Department and financial companies over shoddy mortgage loans in recent years in the wake of the 2007-2009 financial crisis.

“This significant resolution helps rectify the misconduct by returning more than $74 million in wrongfully claimed funds to the government,” Gregory Brooker, the acting U.S. attorney in Minnesota, said in a statement.

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