When searching for a mortgage provider, prospective homeowners often find themselves asking whether the company they are considering is legitimate and trustworthy. PHH Mortgage is one such lender that has been subject to scrutiny and curiosity in this regard. With its long-standing presence in the mortgage industry, PHH Mortgage has garnered both positive and negative attention. In this article, we aim to delve into the facts and assess whether PHH Mortgage is indeed a legitimate and reliable lender.
History and Background
PHH Mortgage traces its roots back to 1946 when it was founded as a subsidiary of the industrial conglomerate, McGraw-Hill. Over the years, the company evolved and expanded, becoming a prominent player in the mortgage industry, servicing a diverse range of clients across the United States. In 1997, PHH Corporation acquired the mortgage division of Cendant Corporation, further strengthening its position in the market.
Legitimacy and Accreditation
One of the primary factors that determine the legitimacy of a mortgage lender is its regulatory compliance and accreditation. PHH Mortgage is a licensed mortgage lender and servicer, authorized to operate in all 50 states in the U.S. This means that the company adheres to the regulations and guidelines set forth by each state’s respective financial authorities. Additionally, PHH Mortgage is a member of the Mortgage Bankers Association (MBA), a national trade association that advocates for the mortgage industry’s interests. Membership in such associations often indicates a commitment to ethical business practices and industry standards.
Consumer Complaints and Reviews
A critical aspect of assessing a company’s legitimacy is scrutinizing its track record with consumers. PHH Mortgage has received its fair share of complaints, as have most large mortgage lenders. Common issues raised by customers include communication problems, delays in processing applications, and difficulties with loan modifications. However, it is essential to consider that customer reviews can be subjective, as negative experiences may stem from various factors, including individual circumstances and expectations.
In contrast, PHH Mortgage has also earned positive reviews from numerous customers who have appreciated the company’s competitive interest rates, knowledgeable loan officers, and smooth loan closing processes. Like any major lender, PHH Mortgage has a diverse clientele, and experiences may vary widely depending on individual situations.
Regulatory Actions and Lawsuits
In the past, PHH Mortgage has faced legal challenges, most notably with the Consumer Financial Protection Bureau (CFPB). In 2014, the CFPB imposed a hefty fine on the company for alleged violations of the Real Estate Settlement Procedures Act (RESPA). The case revolved around alleged kickbacks to mortgage insurers in exchange for business referrals.
PHH Mortgage contested the CFPB’s actions, leading to a lengthy legal battle. Eventually, in 2018, the U.S. Court of Appeals for the D.C. Circuit ruled in favor of PHH Mortgage, determining that the CFPB’s single-director leadership structure was unconstitutional. While the ruling provided some relief to the company, it also brought attention to regulatory uncertainties in the mortgage industry.
Acquisition and Corporate Changes
In 2018, PHH Corporation was acquired by Ocwen Financial Corporation, a financial services company specializing in mortgage services. The acquisition resulted in some concerns among customers regarding the potential impact on service quality and procedures. However, Ocwen, as the new parent company, aimed to leverage the synergies between the two entities to enhance overall efficiency and customer experience.
Conclusion
In conclusion, PHH Mortgage is a well-established mortgage lender with a long history in the industry. While it has faced regulatory challenges and customer complaints over the years, it remains a licensed and accredited mortgage provider, authorized to operate nationwide. Like any large lender, its track record includes both positive and negative customer experiences. Before choosing PHH Mortgage or any other lender, it is crucial for prospective borrowers to conduct thorough research, compare offers, and read reviews from multiple sources. Additionally, consulting with a qualified mortgage professional can provide valuable insights and guidance in making an informed decision about their mortgage needs.
