The Delaware Department of Justice, 48 other state attorneys general, the District of Columbia and over 45 state mortgage regulators have reached a settlement with New Jersey-based mortgage lender and servicer PHH Mortgage Corporation over improper loan servicing. Approximately 123 Delawareans are eligible for a payment as a result of the settlement.

The settlement resolves allegations that PHH, the nation’s ninth largest non-bank residential mortgage servicer, improperly serviced mortgage loans from January 1, 2009 through December 31, 2012, including failing to properly apply or amortize payments, charging authorized fees for defaults, failing to maintain complete loan files, robosigning affidavits used in foreclosures, referring matters to foreclosure improperly, losing or failing to timely process loss mitigation applications and paperwork, and other actions. The agreement requires PHH to adhere to comprehensive mortgage servicing standards, to conduct audits, and to provide audit results to a committee of states. The settlement does not release PHH from liability for conduct that occurred beginning in 2013.

“The settlement holds PHH accountable for harms homeowners suffered from improper loan servicing and shows our continued dedication to this area,” Attorney General Matt Denn said. “The agreement requires new servicing standards to help ensure that PHH doesn’t repeat conduct that led to improper mortgage servicing, and to provide financial relief to aggrieved homeowners.”

Borrowers who were subjected to PHH foreclosures during the eligible period will qualify for a minimum $840 payment, and borrowers who faced foreclosures that PHH initiated during the eligible period, but did not lose their home, will receive a minimum $285 payment. A settlement administrator will contact eligible payment recipients, including those in Delaware, at a later date.

The settlement includes $31.4 million in payments to borrowers, plus administrative penalties paid to state mortgage regulators (Delaware’s $159,000 went to the state General Fund), and additional payments to the 12 state attorneys general who led the investigation and negotiations.

Deputy Attorney General Gillian Andrews handled the matter on behalf of the Delaware DOJ Consumer Protection Unit.

Bills will give local governments new tools to address vacant homes, strengthen neighborhoods

NEW CASTLE, Del. – Governor John Carney on Thursday signed into law House Bills 187 and 188, bipartisan legislation that give new tools to local governments to fight neighborhood blight and combat vacant or abandoned homes.

Representatives J.J. Johnson, Stephanie T. Bolden, Joseph Miro, Daniel Short, John Mitchell and Kim Williams, and Senators Bryan Townsend, Margaret Rose Henry and Stephanie Hansen sponsored the two bills, which passed the General Assembly unanimously in June.

Governor Carney signed the legislation at a vacant home purchased by New Castle County with state funds as part of an anti-blight initiative in the Garfield Park community near New Castle.

House Bill 187 will allow local governments to prequalify bidders at sheriff’s sales to restrict bidders who are delinquent on property taxes or violating property maintenance codes. House Bill 188 will allow local governments to place a lien on a vacant property in violation of maintenance standards to recoup enforcement and abatement costs.

“Vacant and abandoned properties can bring down property values, attract crime and make neighborhoods unattractive places to live, work and play,” said Governor Carney. “Strengthening our communities requires creative solutions to the problems we face, and new tools such as these will help local leaders effectively combat blight by directly addressing vacant homes. Delaware has invested $8.25 million in Strong Neighborhoods funding to redevelop housing in communities such as Garfield Park, which is leading to $35 million in other investment, and we must continue to work supporting residents who want to create safe streets and livable communities.”

Vacant and abandoned homes become breeding grounds for crime and dumping grounds for trash, are targets for arson and become a health and safety hazard for their surrounding communities. These properties also drive costs to county taxpayers, diverting public safety resources, and force local government to pay for basic maintenance, grass mowing, and waste removal. Additionally, vacant and abandoned housing has been shown to depress neighborhood property values and reduce tax revenues that fund critical public services.

“We want our neighbors to have pride in their communities, but housing vacancies overwhelm too many regions of our state and cause a host of problems in its tracks. House Bills 187 and 188 provide a beacon of light in those situations. With these bills, local governments are empowered to take charge of blight in these communities by ultimately working to return vacant properties to use and helping Delawareans restore that pride,” said Representative James Johnson, D-New Castle, prime sponsor of the bills. “Our residents – and their homes- deserve that attention. By eliminating blight we will be able to foster a new sense of community and responsibility.”

“This legislation is all about holding real estate investors accountable and promoting vibrancy in our communities,” said Senator Bryan Townsend, D-Newark. “Neglected properties and blight are having a real impact on crime rates, property values, and quality of life for Delawareans. Investors and people who want to be able take ownership of homes must also take ownership of maintaining them, not just rely on the community and taxpayers to foot the bill for blight.  Coupled with investments in open-space for established neighborhoods, the tools in this legislation can be of great help to promoting the safety and prosperity we should want all Delawareans to enjoy.”

“By turning vacant places across our county and state into livable spaces we will reduce crime, lift property values, and turn liabilities into opportunities for hardworking new homeowners,” said New Castle County Executive Matthew Meyer. “City, county and state collaborated to create stronger policies, and we thank Governor Carney and the leadership of the General Assembly who saw the value in the legislation being enacted today.”

“As a former president of New Castle County Council, I know all too well the cost of blight for local governments,” said Senator Stephanie Hansen, D-Middletown. “The downward spiral that blight creates for entire communities is stunning. It’s not just the risk of crime or fire—studies show that vacant and abandoned homes can affect surrounding residents’ physical and mental health. These bills offer invaluable tools that protect our communities from speculators who try to game the system at our expense, and leave taxpayers and responsible property owners holding the bill. I’m glad to have supported it, and hope to continue working with state and local officials to protect and revitalize our neighborhoods.”

“These new tools build upon the work of the Strong Neighborhoods Housing Fund in purchasing, renovating and selling formerly vacant, abandoned or blighted properties, turning 181 empty homes or vacant lots into owner-occupied homes that brighten a street,” said Anas Ben Addi, Director of the Delaware State Housing Authority. “These partnerships with local governments and nonprofit partners help improve the quality of life for our residents and make Delaware a better place to live.”

“I have seen the negative effects that vacant, abandoned and blighted properties have on vibrant neighborhoods such as ours,” said Lee Jarmon, president of the Overview Gardens Garfield Park Civic Association. “I commend the state, county and other local leaders for working together to pass legislation to address and help to remedy this serious issue.”

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State Rental Assistance Program has housed 1,200 clients on 5th anniversary of collaboration

NEW CASTLE, Del. – Governor John Carney celebrated Monday the fifth anniversary of the State Rental Assistance Program, which has provided housing for 1,200 Delawareans through a unique collaboration supporting those in special need of help. The anniversary event took place at the Herman S. Holloway Campus of the Department of Health and Social Services.

“We are providing a bridge to independence, helping more Delawareans live self-sufficient lives,” said Governor Carney. “SRAP is a great example of how government agencies can work together to more efficiently deliver important services, and effectively help Delawareans in need. Thank you also to members of the General Assembly for their continued support of the program.”

The State Rental Assistance Program, or SRAP, provides rental vouchers to low-income Delawareans who require affordable housing and supportive services to live safely and independently in the community. Case managers help provide or coordinate those services and help residents through the rental process. SRAP helps particularly vulnerable populations – people exiting or at risk of admission to state long-term care institutions, youth aging out of foster care, and families for whom housing is a barrier to reunification, among others. All clients must be referred by an agency or partner.

Since 2011, more than 200 SRAP clients have successfully transitioned out of the program, either by handling rental payments on their own or by receiving housing assistance from another source. There are more than 720 families and individuals currently housed through SRAP.

SRAP client Zoraida Baez found the first apartment she has lived in that she can call her own through the program. “It’s such a relief,” said Baez, of Newark, who has also experienced homelessness. “I love it. I can come and go when I want. It’s my own place.”

SRAP is operated jointly by the Delaware State Housing Authority, which issues the vouchers; the Department of Health and Social Services, which refers clients in various programs; and the Department of Services for Children, Youth, and Their Families, which refers former foster youth and reunification families. Funding comes from the state’s General Fund through DSHA, as well as through DHSS’ Division of Substance Abuse and Mental Health, totaling $5.3 million.

“This is about caring for the whole person – not just looking at one part of their needs at a time,” said DSHA Director Anas Ben Addi. “We heard from advocates that the lack of affordable housing is a barrier to many low-income people and families with special needs to live and be successful, and we responded. This partnership shows that it is possible to serve people better, with a better quality of life, while reducing public costs.”

“The State Rental Assistance Program gives vulnerable populations the one thing we all want: The opportunity to have a place to call home,” said DHSS Secretary Dr. Kara Odom Walker. “For people leaving facilities or individuals with disabilities, these housing vouchers offer an affordable and safe way for them to live in the community. It’s not always easy to start anew, but the teamwork of SRAP makes the transition manageable, including clients to supportive services. The collaboration across state government provides a better quality of life for the vulnerable people we serve, saves the taxpayers hundreds of thousands of dollars and helps us build a healthier Delaware.”

“For young people leaving our foster care system, the challenges of transitioning to adulthood can be quite daunting. Sometimes their most basic needs, like a safe and affordable home, can seem unobtainable,” said DSCYF Secretary Josette Manning. “The SRAP program helps our youth secure a home so they can focus on meeting their other needs, such as education, employment and even basic health services. We are extremely grateful for this program because without it, it would be impossible for our foster children to thrive as adults.”

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Photos are available for media use on Flickr.

WILMINGTON — Families and others who want to learn more about buying a home can get a wealth of information at the free Delaware Homebuyer Fair later this month. The April 22 event at the Chase Center on the Riverfront, running from 8 a.m. to 3 p.m., offers educational seminars on every aspect of home buying, as well as the chance to connect with service providers in the real estate, financing and home buying fields.

The event, now in its seventh year, typically draws between 350 and 400 people. Registration is strongly suggested to save a spot by visiting destatehousing.com.

“The Homebuyer Fair is a great opportunity to get lots of information all in one place. We make it as simple as possible for people to learn about buying a home,” said Delaware State Housing Authority Director Anas Ben Addi. “Our goal is to help people become better prepared and feel comfortable with the process.”

Seminars will cover topics such as finding properties, obtaining low-cost financing, downpayment assistance, home inspections and maintenance, and budgeting. Attendees can earn credit toward HUD Homebuyer Education Certificate requirements.

The Homebuyer Fair is presented by the Delaware State Housing Authority in partnership with the Delaware Federation of Housing Counselors. Sponsors include Faith 1510, Hilltop Securities, GreenbergTraurig, 93.7 WSTW, WDEL 101.7, Xfinity, DrinkerBiddle, Ward & Taylor, Meridian Bank and George K. Baum & Company.

Attendees can register online at destatehousing.com or by contacting DSHA at 888-363-8808.

# # #

Media contact:
Dan Shortridge
Director of Public Relations
Delaware State Housing Authority
302-739-0271
dans@destatehousing.com

“Thank you to the members of the Delaware Senate for confirming a group of dedicated public servants to positions in my Cabinet. Together, we will work to improve our public education system; make common-sense criminal justice reforms; invest in Delaware’s agricultural industry; expand broadband access; make affordable housing more accessible; and continue to make investments that modernize our Delaware National Guard.”

The Delaware Senate voted to confirm the following nominees to Governor Carney’s Cabinet on Wednesday:

Brigadier General Carol A. Timmons was confirmed as the next Adjutant General of the Delaware National Guard. General Timmons will replace Lieutenant General Francis D. Vavala, who will retire effective January 31 after nearly 50 years of service. He has led the Delaware National Guard as Adjutant General since 1999.

General Carol A. Timmons is currently the Assistant Adjutant General responsible for leading the Delaware Air National Guard, commanding an authorized force of 1,100 Airmen and ensuring that all Guard Airmen are trained, organized and equipped to support federal and state missions.

General Timmons has served as a member of the Delaware National Guard for 39 years, serving as a pilot in both the Delaware Army National Guard and the Delaware Air National Guard.

She is a veteran of Operations Desert Shield, Desert Storm, Southern Watch, Joint Guard, Iraqi Freedom, and Enduring Freedom. In 2008, she earned a Bronze Star for her service commanding a combat deployment to Afghanistan.

General Timmons will become Delaware’s first female Adjutant General, with responsibility for preparing the Delaware National Guard to support both federal and state missions.

Anas Ben Addi was confirmed to continue serving as Director of the Delaware State Housing Authority, a housing finance and community development agency that ensures that Delawareans have access to quality, affordable housing and oversees community and neighborhood revitalization efforts statewide.

Ben Addi was first nominated by Governor Jack Markell and confirmed by the Delaware Senate in 2009 to lead DSHA. During his time as Director, Ben Addi has helped launch and implement the State Rental Assistance Program, which helps Delawareans who require supportive services to live safely and independently in their communities.

He also has expanded access to DSHA’s low-cost mortgage programs and led efforts to drive private investment in Delaware’s downtown areas through the Downtown Development Districts program.

Dr. Susan Bunting was confirmed as Secretary of the Delaware Department of Education, overseeing Delaware’s public school system and serving as an education policy adviser to the Governor.

Since 2006, Dr. Bunting has been Superintendent of the Indian River School District, one of the state’s largest school districts serving more than 10,000 students. Dr. Bunting has worked at Indian River since 1977, first as a teacher, and later as the district’s Supervisor of Elementary Instruction and K-12 Director of Instruction.

In 2012, she was one of four finalists for the American Association of School Administrators’ National Superintendent of the Year award. Dr. Bunting earned a Doctorate in Education Leadership from the University of Delaware.

Robert Coupe was confirmed as Secretary of the Delaware Department of Safety and Homeland Security, the agency with responsibility for protecting the safety and welfare of all Delawareans, overseeing the Delaware State Police, the Delaware Emergency Management Agency, and the State Council for Persons with Disabilities, among other divisions.

Coupe has served as Commissioner of the Delaware Department of Correction since 2013, having been appointed by Governor Jack Markell and confirmed by the Delaware Senate. In his current position, he oversees Delaware’s correctional system, leading an agency with 2,500 employees that supervises more than 7,000 inmates.

Previously, he spent more than 28 years at the Delaware State Police, including more than three years leading the State Police as Superintendent. During his career as a State Trooper, he worked as a Detective in the Major Crimes and Homicide units, drill instructor at the training academy, Patrol Sergeant, and Internal Affairs investigator.

James Collins was confirmed to continue serving as Chief Information Officer at the Delaware Department of Technology and Information, overseeing the department that provides technology services to state organizations and serving as a technology adviser to the Governor.

Collins was first nominated as Chief Information Officer by Governor Jack Markell and confirmed by the Delaware Senate in 2014. During his tenure, Collins has expanded broadband services across rural areas in Delaware, helped implement the Delaware Cyber Security Advisory Council and expanded the state’s open data portal.

He previously served as Deputy Secretary of State and Deputy Chief of Staff to Governor Markell. Earlier, he was a senior consultant with Peregrine Systems and MAXIMUS Inc., implementing large-scale software projects for clients including Pepsi Bottling Group, the U.S. Marine Corps and the Massachusetts Bay Transit Authority. Collins is also an 8-year veteran of the U.S. Air Force, where he helped implement the Composite Healthcare System to convert from paper-based to electronic record and scheduling systems.

Michael Scuse was confirmed as Secretary of the Delaware Department of Agriculture, an agency that promotes and supports Delaware’s agricultural industry, oversees food inspection services to protect Delaware consumers, ensures agricultural compliance statewide, and helps conserve forest resources.

Scuse has served as the Acting Deputy Secretary of the U.S. Department of Agriculture since March 2016, helping support the national agricultural industry, promote vibrant rural communities, and open new markets for America’s farmers. Previously, Scuse was nominated by President Barack Obama and confirmed by the U.S. Senate as Under Secretary for Farm and Foreign Agricultural Services, leading efforts to promote American agricultural products globally. From 2001 to 2008, he served Secretary of the Delaware Department of Agriculture under then-Governor Ruth Ann Minner.