'Not a close call': PHH indisputably wins CFPB court battle

Mortgage lender topples regulator in case over whether its captive reinsurance practices violated RESPA
  • In the latest hearing, the court ruled that the CFPB is "unconstitutionally structured" and imposed parameters around the director position.
  • The court also sided with PHH’s RESPA arguments, ruling that captive reinsurance is permissible under RESPA.

Mortgage lender PHH Corp. is having a very good Tuesday. The company has been battling the Consumer Financial Protection Bureau (CFPB) over its mortgage insurance practices since 2014, when the CFPB alleged that PHH referred consumers to preferred mortgage insurer partners and took reinsurance fees as kickbacks.