CFPB Dismisses PHH Enforcement Action

Jun 08, 2018

The Consumer Financial Protection Bureau (CFPB) has quietly dropped dismissed its four-year-old enforcement action against PHH Corp.

The decision comes one month after 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 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 brought its lawsuit against the CFPB over a $103 million enforcement action issued by then-CFPB Director Richard Cordray in 2014, and the Court of Appeals reimbursed PHH over what it considered as an inappropriate fine as part of its January ruling.

“Enforcement counsel and respondents have conferred, and have agreed to recommend dismissal of this administrative proceeding,” said Kristen Donoghue, the CFPB’s enforcement director, in a joint statement with a team of CFPB attorneys. “Accordingly, enforcement counsel and respondents respectfully request that the acting director proceed to dismiss this matter.”

“We are extremely gratified to have this matter fully resolved as a result of Acting Director Mulvaney’s decision to dismiss this case,” said PHH in a statement. “Today’s order is consistent with our long-held view that we complied with RESPA and other laws applicable to our former mortgage reinsurance activities in all respects.”

PHH was acquired by Ocwen Financial Group in February for $360 million.

About the author

Phil Hall

Link copied

Published

Jun 08, 2018

People On The Move

Ginnie Mae President Alanna McCargo Announces Resignation

McCargo was first woman and first woman of color at the helm of Ginnie Mae.

The U.S. Department of Housing and Urban Development (HUD) today announced that Alanna McCargo, president of the Government National Mortgage Association (Ginnie Mae), will resign, effective May 3, 2024. McCargo has served in the Biden-Harris Administration since January ...

People On The Move

Christensen, Andrus Added At CE Class Leader

Maximum Acceleration hires mortgage exec. as education director, adds banking manager

Brandon Christensen, a longtime mortgage broker and trainer, has been named Director of Education and National Instructor for Maximum Acceleration LLC, a leading NMLS-approved course provider for mortgage pre-license and continuing education. "Having Brandon join our amaz...

Jun

Detroit, MI

More from

Regulation and Compliance

In Wake Of NAR Settlement, Dual Licensing Carries RESPA, Steering Risks

With the NAR settlement pending approval, lenders hot to hire buyers' agents ought to closely consider all the risks.

Regulation and Compliance

Apr 11, 2024

A California CRA Law Undercuts Itself

Who pays when compliance costs increase? Borrowers.

Regulation and Compliance

Apr 11, 2024

CFPB Weighs Title Insurance Changes

The agency considers a proposal that would prevent home lenders from passing on title insurance costs to home buyers.

Regulation and Compliance

Apr 10, 2024

Fannie Mae Weeds Out "Prohibited or Subjective" Appraisal Language

The overall occurrence rate for these violations has gone down, Fannie Mae reports.

Regulation and Compliance

Apr 10, 2024

Arizona Bans NTRAPS, Following Other States

ALTA on a war path to ban the "predatory practice of filing unfair real estate fee agreements in property records."

Regulation and Compliance

Apr 04, 2024

Kentucky Legislature Passes Bill Banning NTRAPS

The new law prohibits the recording of NTRAPS in property records, creates penalties if NTRAPS are recorded, and provides for the removal of NTRAPS currently in place.

Regulation and Compliance

Apr 03, 2024

Popular