Skip to main content

PHH Drops CFPB Challenge, Litvak Conviction Overturned

May 04, 2018
UBS Group is waiting to be hit with a Department of Justice (DOJ) lawsuit related to its sale of residential mortgage-backed securities (RMBS) in period before the 2008 financial crisis

A pair of high-profile court cases related to the mortgage industry took surprising turns yesterday.
 
PHH Corp. has announced that it will not appeal a U.S. Court of Appeals ruling from January that ruled against the mortgage company’s efforts to challenge the constitutionality of the Consumer Financial Protection Bureau (CFPB). That ruling overturned a 2016 decision from a panel of the court’s judges that declared the president had the authority to fire the CFPB director at will.
 
PHH informed The Hill of its decision not to seek an appeal to the U.S. Supreme Court. PHH brought its lawsuit against the CFPB over a $103 million enforcement action, and the Court of Appeals reimbursed PHH over what it considered as an inappropriate fine as part of its January ruling.
 
Separately, the 2nd U.S. Circuit Court of Appeals overturned the second criminal conviction against former Jefferies Group mortgage bond trader Jesse Litvak on charges of defrauding a customer about bond prices between 2009 and 2011, generating $2.5 million in illegal profits. According to a Reuters report, the court determined that the jury in the case had wrongly been allowed to hear irrelevant evidence, and the case was ordered back to the U.S. District Court in Connecticut for what could be a third criminal trial.


 
About the author
Published
May 04, 2018
New Compliance Requirements Add Challenges

Latest changes arrive at an already disruptive time in the mortgage industry

Changes Coming For Investment Properties

Using leases to qualify will require Proof

FCC Adopts New Rules To Close The 'Lead Generator Loophole'

Mortgage lead providers respond, saying this will "wipe out" several small and mid-tier businesses

Trade Associations & Lenders Stand Behind Trigger Leads Bill

Major trade associations like The MBA, NAMB, and BAC, urge action on S. 3502.

Supply And Demand Are Still Alive And Well

Treasury auctions may face weaker demand but they’re still getting done

Allowing The ‘Dogs’ To Bark

More lenders need to know about 203(k) financing