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

Phil Hall

Link copied

Published

May 04, 2018

Analysis and Data

Record Home Equity Masks Growing Distress Among Recent FHA, VA Borrowers

Some 320,000 homeowners are both underwater and behind on their payments — nearly twice as many as a year ago — even as mortgage-holder equity approaches $18 trillion.

Mortgage holders collectively entered the third quarter with nearly $18 trillion in home equity, but that record wealth is obscuring mounting distress among recent FHA and VA borrowers who bought near the top of their local markets.Some 320,000 homeowners were both underwate...

People On The Move

Certainty Home Lending Names Bryan Ingenito National Operations Executive

The former Bank of America executive will oversee national fulfillment as the Rate subsidiary prepares to scale

Certainty Home Lending has named Bryan Ingenito executive vice president and national operations executive, placing the 28-year mortgage and consumer-banking veteran in charge of its national operations strategy and fulfillment organization.Ingenito joins the Dallas-based le...

Nov

Pasadena, CA

More from

Regulation and Compliance

CHLA Uses Trump Mortgage Order To Renew Push For LO Comp Reform

Community lenders want more flexibility over employee compensation, closing-cost estimates, down payment assistance, and federal supervision of smaller IMBs

Regulation and Compliance

Aug 10, 2026

Servicers Begin Testing Systems Ahead of VA Partial Claim Deadline

VA lenders and servicers have until Nov. 28 to implement the new loss mitigation waterfall and Partial Claim Program

Regulation and Compliance

Aug 06, 2026

ROAD Act’s Housing Incentive May Be Too Small To Move Supply

Realtor.com finds the median city risks losing only about $84,000, although the policy could carry more weight in supply-starved Northeast and Midwest markets

Regulation and Compliance

Aug 05, 2026

CRA Proposal Could Reshape Bank Lending And Affordable Housing Investment

The OCC and FDIC would put more weight on lending while easing community development requirements for hundreds of banks

Regulation and Compliance

Aug 05, 2026

Fannie Mae AI Governance Deadline Arrives Aug. 6

Seller/servicers using artificial intelligence in origination or servicing must have formal policies, oversight, and vendor controls in place

Regulation and Compliance

Jul 31, 2026

Condo Review Deadline Puts Lenders On The Clock

Fannie Mae and Freddie Mac will eliminate abbreviated project reviews for condo applications dated on or after Aug. 3