Consumer Financial Protection Bureau Accuses PHH Corp. of Mortgage Insurance Kickback Scheme

WASHINGTON, D.C. — An administrative proceeding has been initiated against PHH Corp. and its affiliates by the Consumer Financial Protection Bureau, which accuses PHH of participating in a 15-year mortgage insurance scheme through which it received hundreds of millions of dollars in kickbacks.

According to a CFPB press release, the Jan. 29 filing is against New Jersey-based PHH Corp. and its residential mortgage origination subsidiaries, PHH Mortgage Corp. and PHH Home Loans LLC, and PHH’s wholly-owned subsidiaries, Atrium Insurance Corp. and Atrium Reinsurance Corp.

The CFPB says these companies violated the Real Estate Settlement Procedures Act by entering into captive …