- The CFPB alleges PHH Corp. (PHH -2.5%) over 15 years collected up to 40% of premiums paid by consumers to mortgage insurers - "hundreds of millions in kickbacks." The company worked it, says the CFPB, by pressuring the insurers to purchase reinsurance from PHH. Those fees - rather than transferring risk - were kickbacks in exchange for the original referral, says the agency.
- PHH: "We believe the CFPB's allegations grossly mischaracterize the legitimate business activities of our mortgage reinsurance subsidiary."
- The case will be handled by an administrative law judge.
- Last year, the CFPB reached settlements with five mortgage insurance companies totaling $15.5M over alleged kickbacks.