Consumer Bureau Action Tracker

CFPB – PHH Corporation


New Jersey, Pennsylvania


PHH Corporation


Enforcement, Mortgages

In 2014, the CFPB took action against PHH Corporation, a mortgage lending company, for “collecting kickbacks from mortgage insurers as part of a scheme dating back to 1995.” In June 2015, the company was ordered to pay $109 million to the CFPB.

  • In January 2014, the CFPB “initiated an administrative proceeding against” PHH Corporation, a “Mount Laurel, N.J.-based” mortgage lending company. CFPB accused the company “of collecting kickbacks from mortgage insurers as part of a scheme dating back to 1995.”

According to the CFPB, an investigation revealed that when the company “originated mortgages, it referred consumers to mortgage insurers with which it partnered. In exchange for the referrals, the insurers purchased supposed reinsurance from PHH subsidiaries,” which PHH took “as kickbacks, in violation of Real Estate Settlements Procedures Act (RESPA).” The CFPB claimed that “consumers ended up paying more in mortgage insurance premiums” because of PHH’s scheme.

The investigation was initiated by The Office of Inspector General at the Department of Housing and Urban Development (HUD) but was transferred to the CFPB in July 2011. The CFPB sought “a civil fine, a permanent injunction to prevent future violations and restitution.” [Jeff Blumenthal, “Local mortgage lender accused of taking kickbacks”, Philadelphia Business Journal, 01/30/14]

  • In June 2015, CFPB Director Richard Cordray “issued a decision in the first appeal of a Bureau administrative enforcement proceeding.” He issued “a final order that prohibits PHH from violating the law and requires it to pay $109 million to the Bureau.” [Consumer Financial Protection Bureau, Press Release, 06/04/15]



2014-CFPB-0002 1/29/2014 1/29/2014

CFPB Takes Action Against PHH Corporation for Mortgage Insurance Kickbacks; CFPB Director Cordray Issues Decision in PHH Administrative Enforcement Actions

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $109,000,000
  • Not Available



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