PHH Fights Back with CFPB

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If you recall, PHH Mortgage had a $109MM issue with the CFPB.  Well, they appealed and won, but now the CFPB is pushing back.



  • Hi guys, it does say “should have never received”. I still agree with you though!!

    Kevin Beard November 12, 2015 2:30 am Reply
  • Hey guys, the article actually said ‘payments they should have never received in the first place’.

    Jonathan McKinnies November 12, 2015 3:08 am Reply
  • Missing a little word called “NEVER”. Nonetheless, it’s still a messed up deal.

    Andrew Cady November 12, 2015 4:13 am Reply
  • Reading comprehension . . .

    Rusty November 12, 2015 7:42 am Reply
  • Reading comprehension ain’t for everybody . . .

    Rusty November 12, 2015 7:43 am Reply
  • PHH has been delivering kickbacks for many years probably to the tune of $109 mil. They knew what they were doing, not only did consumers get hurt but also the small business (mortgage broker) that never got a shot at the deal. All you guys can say is poor PHH. I hope the CFPB goes after any and everybody with these bogus MSAs. Even in today’s environment its worse than I have ever seen. Just about every Real Estate Company and every builder has an MSA with a Lender. I’m sorry, I mean kick back agreement.

    Jim LaPointe November 12, 2015 7:46 am Reply
  • My thoughts are you are missing the point of the purpose of the MSA. Do you think PHH or any of the other lenders in these agreements are reducing margins? They are not, thus the customer, who the CFPB is trying to protect is getting measurably higher rates and paying thousands of more dollars over the life of the loans “steered” to the lender by the MSA partner. And as PHH gets sliced and diced up and sold to the lowest bidder, let the others take notice. Fair Lending should be just that, not what ever benefits the bottom line most. With that said, the CFPB should be abolished, as it contradicts our entire doctrine in the USA. Freedoms are being chipped away slowly under the guise of making us safer?!?

    BMos November 12, 2015 8:11 am Reply
  • When consumers are directed to a *single lender* as a result of that lender paying the RE broker a monthly MSA —- THATS A KICKBACK. More IMPORTANTLY – it eliminates the objectivity of the agent who would like to refer XYZ Lender based on great service and/or a special program specifically geared towards their buyers needs (such as a discounted product based on income or property location). The agents are pressured by the RE broker to use the favored lender. We ALL know this goes on constantly. This action by the CFPB is one of the good things to come out of the agency.

    Doug Hutchins November 12, 2015 10:34 am Reply
  • It has been said a bazillion times (that is a “technical term”) that we do not need the CFPB. Well then, what group or agency is going to police apparent wrongdoing by Lenders which hurt Consumers? MSAs are kickbacks, plain and simple. Rates/terms are not as reasonable as they might be for Consumers when kickbacks, er, MSAs are involved. How does this benefit the Consumer, other than bundled services may be easier for them to acquire. A referral is just that, a referral, plain and simple. When I send someone to a Real Estate Agent, I do not ask for money, nor expect any OR to the retail side of a Lender when there are odd, extenuating circumstances. When you make a recommendation to a good restaurant, do you expect to be compensated for that referral?! Seriously. PHH knew exactly what they were doing, made LOTS-O-MONEY doing it and now the CFPB wants them to give some of it back.

    Black’s Law Dictionary defines disgorgement as “the act of giving up something (such as profits illegally obtained) on demand or by legal compulsion”. A court may order wrongdoers to pay back illegal profits, with interest, to prevent unjust enrichment. Disgorgement is a remedy and not a punishment.

    Just sayin’…

    Leslie November 12, 2015 12:22 pm Reply
  • Would you feel comfortable if your surgeon paid the highest kickback of any other Doctors referring patients to him?…, I don’t think so. You would want to be referred knowing that there was absolutely NO financial reward whatsoever. Kickbacks make it all about the money, how naive to think otherwise. Any form of kick back should be strictly enforced including all MSAs. If Real Estate Brokers want to be in the mortgage business, let them open a company deal with all the things we have to deal with and compete like everyone else.

    Howard November 12, 2015 12:55 pm Reply
  • While I MAY agree that some of the MSA’s out there were not good for consumers, MOST of what PHH does in this arena was through JV’s, Not MSA’s. A joint business venture is completely legal and in no way shape or form hurts the customer. It is like an auto dealer also having a body shop or a gas station having a car wash. Does one service provider bringing another service to the opportunity of the consumer create an unfair, deceptive environment? Absolutely NOT! Like most other lenders across the country, PHH has abandoned the MSA model. Great for big government, bad for main street… shame on the CFPB once again!

    Don February 4, 2016 1:38 pm Reply

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