The CFPB Targets Mortgage Reinsurance — Again

Law360, New York (February 6, 2014, 11:50 AM EST) -- The Consumer Financial Protection Bureau filed an administrative enforcement action against PHH Corp., alleging a nearly 15-year “mortgage insurance kickback scheme” by its mortgage origination and reinsurance subsidiaries involving “hundreds of millions of dollars” in allegedly improper reinsurance fees.

This action follows on the heels of the bureau’s consent orders totaling $15.5 million with five mortgage insurers, settling allegations that the insurers’ agreements with mortgage originators violated the Real Estate Settlement Procedures Act. How this new action might relate to those settlements remains to be seen....
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