CFPB Targets Mortgage Co. Over Insurance Kickbacks

Law360, New York (January 29, 2014, 2:51 PM EST) -- The Consumer Financial Protection Bureau on Wednesday administratively charged PHH Corp. and its mortgage reinsurance subsidiaries with harming consumers through a mortgage insurance kickback scheme.

In a complaint naming New Jersey-based PHH, PHH Home Loans LLC, Atrium Insurance Corp. and Atrium Reinsurance Corp., the CFPB alleged that when PHH originated mortgages, it referred consumers to mortgage insurers with which it partnered. In exchange for this referral, these insurers purchased reinsurance from PHH’s subsidiaries. PHH allegedly took the reinsurance fees as kickbacks, in violation of the Real...
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