CFPB Launches First Nonbank Mortgage Lender Probe

Posted by Orb Staff on January 11, 2012 No Comments
Categories : Residential Mortgage

10689_cfpb CFPB Launches First Nonbank Mortgage Lender Probe The Consumer Financial Protection Bureau (CFPB) has launched its first investigation against a nonbank mortgage lender by targeting the mortgage insurance practices of PHH Corp., based in Mount Laurel, N.J.

The Wall Street Journal reports that PHH disclosed the probe in a filing with the U.S. Securities and Exchange Commission (SEC), in which the company stated that the CFPB had opened an investigation to determine if PHH was in compliance with a federal law that prohibits real estate transaction kickbacks.

In its SEC filing, PHH stated that it ‘believes that it has complied with the Real Estate Settlement Procedures Act and other laws.’ PHH also acknowledged that it is experiencing financial difficulties and warned that potential disruptions to its liquidity ‘could raise doubt’ about its ability to continue operations.

The CFPB made no mention of the PHH probe on its website and has not issued a public comment on the subject.

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