PHH Corp. is celebrating the Consumer Financial Protection Bureau’s dismissal of a closely watched case involving alleged violations of the Real Estate Settlement Procedures Act.

At issue are reinsurance payments collected by the Mount Laurel, New Jersey-based company and four of its subsidiaries that allegedly violated RESPA.

In 2014, an administrative law judge recommended that PHH disgorge more than $6 million as a result of its alleged activities even though the Department of Housing and Urban Development issued a letter in 1997 indicating that captive reinsurance arrangements are permissible as long as lenders provide services for the fees.


Source: Mortgage Daily