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
President Trump ‘Giving Very Serious Consideration’ To Re-Privatizing Fannie And Freddie

President indicates the time ‘would seem to be right,’ says he’ll make a decision ‘in the near future’

James Brody, Esq. Now Owner Of New, National Compliance, Litigation Law Firm

JW Brody | Compliance & Litigation to serve IMBs, mortgage brokers, depositories, credit unions, and fintechs

May 19, 2025
DOJ Opens Criminal Investigation Into NY AG Letitia James Over Mortgage Fraud Claims

Investigation follows April referral by FHFA Director Bill Pulte; potential charges include wire, mail, and bank fraud

May 09, 2025
Federal Layoffs Help Drive Record 25% Surge In D.C. Housing Inventory

Cuts at mortgage, housing-related agencies help spur government employee exodus from the nation’s capital

May 07, 2025
Undocumented, But Not Unmortgageable

As immigration enforcement intensifies, lenders must decide if ITIN mortgages are too risky — or too valuable to ignore

Freddie Mac’s Net Income Up By $28M To $2.8B For Q1 2025

GSE sees chance to ‘strip away unnecessary bureaucracy and eliminate non-essential activities’ to drive tech investments, lower origination costs

May 01, 2025