twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


PHH Latest Target in M.I. Kickback Actions

Regulatory actions initiated

Jan. 29, 2014

By Mortgage Daily staff

PHH Corp. and four of its subsidiaries are facing regulatory actions for allegedly operating an illegal mortgage insurance kickback scheme beginning nearly two decades ago.

PHH Mortgage Corp. and PHH Home Loans LLC are accused of receiving kickbacks in return for directing business to mortgage insurance companies.

The kickbacks were allegedly paid to PHH's wholly owned subsidiaries Atrium Insurance Corp. and Atrium Reinsurance Corp. through reinsurance arrangements.

Such payments violate the Real Estate Settlement Procedures Act, or RESPA.

The Consumer Financial Protection Bureau said that an investigation it conducted found that PHH operated the scheme from 1995 until 2009.

The regulator has reportedly filed an administrative action against PHH that seeks a civil fine, restitution for victims and a permanent injunction to prevent future violations.

According to the CFPB, PHH allegedly received as much as 40 percent of mortgage insurance premiums -- which amounted to hundreds of millions of dollars.

The bureau claims that some borrowers who did not purchase insurance from one of PHH's kickback partners were charged more for their loans.

"PHH pressured mortgage insurers to 'purchase' its reinsurance with the understanding or agreement that the insurers would then receive borrower referrals from PHH," the CFPB announcement said. "PHH continued to steer business to its mortgage insurance partners even when it knew the prices its partners charged were higher than competitors' prices."

Proceedings for an administrative forum have been initiated by the CFPB through the filing of a notice of charges. The notice is similar to a complaint that is filed in federal court.

The case will be tried by an administrative law judge from the CFPB's Office of Administrative Adjudication. The judge will hold hearings and make a recommended decision.

PHH can appeal the decision to the CFPB director.

In November 2013, the CFPB announced that it issued a consent order against Republic Mortgage Insurance Corp. over allegedly illegal kickbacks, while it reached settlements in April 2013 with Genworth Mortgage Insurance Corp., Mortgage Guaranty Insurance Corp., Radian Guaranty Inc. and United Guaranty Corp.

However, Fifth Third Bank in April won a dismissal of a federal lawsuit alleging RESPA violations tied to mortgage insurance kickbacks.

PHH profile

next story


back to current headlines


Mortgage Insurance News | M.I. Directory | M.I. Statistics
News about mortgage insurance issuance, defaults and litigation
.


www.mortgagebranchmanagerjobs.com
Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.


Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.

www.mortgagebranchmanagerjobs.com
Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders