When a federal appeals court made a controversial decision that the Consumer Financial Protection Bureau’s (CFPB) single-director organizational structure is "unconstitutional," it was no surprise that the CFPB asked the court to reconsider. And it is also no surprise that mortgage lender PHH Corp., which is hoping to bring an end to its nearly three-year, contentious legal tangle with the CFPB, would prefer that the court let the decision stand. [gview file="http://www.inman.com/wp-content/uploads/2016/12/Inman.CFPBvPHH.PHHenbancresponse.pdf"] Trouble brewing Trouble began for the New Jersey-based lender in January 2014, when CFPB Director Richard Cordray filed a notice of charges accusing PHH and its mortgage insurance partners of engaging in a mortgage reinsurance kickback scheme since the 1990s, a violation of Section 8 of the Real Estate Settlement Procedures Act (RESPA). Cordray elected to use the CFPB's administrative adjudication power rather than filing a law...
- In October, a federal appeals court ruled that the CFPB's single-director structure was "unconstitutional" in a case involving mortgage lender PHH.
- The CFPB has asked the appeals court to revisit the decision, while PHH has asked the court not to.
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