A lawsuit accuses PHH Mortgage Corporation of pushing toward foreclosure after receiving $60,000 in state assistance funds it allegedly never applied to the loan.
The case, filed February 3, 2026, in the United States District Court for the District of Oregon, puts a spotlight on how mortgage servicers handle funds from the Homeowner Assistance Fund, the state-administered program designed to help borrowers cure pandemic-era delinquencies.
According to court documents, the State of Oregon disbursed approximately $60,000 in HAF funds to PHH on or around March 5, 2025, to bring current a delinquent FHA mortgage on a property in Sweet Home, Oregon. Around the same time, PHH approved a loan modification and sent paperwork to the borrowers for signature…