Tag Archives: PHH Mortgage

Jeff Sessions’ DOJ Backed a Mortgage Corporation Over a Veteran

Happy Memorial Day….

Esquire:

From OregonLive:

The Marine Corps called him back to Iraq and Afghanistan for three more tours. He was in Fallujah in Iraq’s “bloody triangle” during the surge. In all, he spent about four years in the Middle East. In between deployments, McGreevey would return to Vancouver, where he managed to buy a house on Northeast 24th Court. But the years overseas took a toll. He says he made a fateful mistake: trusting someone else to make the mortgage payment. He returned from his third tour in June 2010, just in time to watch PHH Mortgage repossess his house. Knowing next to nothing about the consumer protections afforded him as a member of the military, McGreevey didn’t contest it. The foreclosure became final on Sept. 10. McGreevey’s final deployment ended in 2012. He had advanced from private to staff sergeant. Though diagnosed 80 percent disabled with post-traumatic stress syndrome, hearing loss and a back injury, he set about reinventing himself for civilian life. He earned a business degree from Portland State University and got a job at a bank.

So, yes, PHH foreclosed on a veteran while he was on his third tour in the Middle East. Happy Memorial Day Weekend. Luckily, there is something called the Servicemembers Civil Relief Act that is supposed to protect members of the military serving overseas from having done to them exactly what PHH did to Jacob McGreevey. He got legal help and took PHH to court. Then, something happened.

What neither McGreevey nor Riddell anticipated was that PHH Mortgage wasn’t going to be their only adversary. Five months after the U.S. Department of Justice announced a major initiative to crack down on financial institutions taking advantage of active-duty service members, the agency intervened in McGreevey’s case. But it didn’t come in on the side of the Marine.It went with the lender.

The United States Department of Justice—Jefferson Beauregard Sessions III, proprietor—has intervened on the side of a corrupt corporation and against a serviceman done dirt by that corrupt corporation. It already has filed a brief on behalf of PHH in the federal lawsuit against the CPFB.

Ocwen pulls a PHH: Asks court to declare CFPB unconstitutional, requests DOJ help

Ocwen Financial is pulling a PHH.

Just as PHH did recently, Ocwen is playing the unconstitutional card in its fight against the Consumer Financial Protection Bureau, asking the United States District Court for the Southern District of Florida to declare the CFPB unconstitutional and toss out the CFPB’s lawsuit against the company.

Read on.

Two lawmakers join battle between the CFPB and PHH

Housingwire:

While the landmark case between PHH and the Consumer Financial Protection Bureau awaits a decision on whether the full Court of Appeals will rehear the case, more politicians are publicly voicing their support for the bureau.

A new update from the CFPB Monitor stated that Sen. Sherrod Brown, D-Ohio, and Rep. Maxine Waters, D-Calif., who are, respectively, the Ranking Members of the Senate Banking Committee and the House Financial Services Committee, filed a motion with the D.C. Circuit seeking to intervene in the PHH appeal.

The motion comes shortly after a similar motion from a dozen Democratic state attorneys general.

The 17 attorney generals said that the election of Donald Trump compelled them to intervene in the CFPB lawsuit. “When PHH filed the original petition for review in June, 2015, there was little reason for the State Attorneys General to intervene. At that time, the CFPB still had an independent Director and was fully committed to seeking rehearing to challenge the panel’s ruling and defend the constitutionality of the bureau’s independent structure,” the AGs state in their motion to intervene.

“But as a result of the presidential election,” the AGs continued, “the situation has changed.”

Now, both Brown and Waters are following suit.

From the CFPB Monitor:

The new movants rely primarily on the argument that they cannot rely on the CFPB under the Trump Administration to adequately represent their interest in defending the CFPB’s status as an independent agency.

As grounds for why they have a legally protected interest which would be impaired by the litigation, Senator Brown and Representative Waters point to their votes for the Dodd-Frank Act and claim that if the CFPB, acting at the new Administration’s direction, does not defend its constitutionality, “movants’ votes to establish the Bureau as an independent agency will be nullified without full judicial review of the constitutional question presented in this case.” 

PHH fined $28 million by NYFDS for shady mortgage servicing

When PHH reported its third quarter earnings on Tuesday, the company made several disclosures, including that it planned to exit its private-label origination business, that it planned to sell off its Ginnie Mae mortgage servicing rights portfolio, and that it was facing disciplinary action from the New York Department of Financial Services.

The company didn’t provide any details on the nature of the disciplinary action, the reason behind it, or an expected timeline, other than to say it anticipated the matter being resolved “in the fourth quarter.”

As it turned out, the wait to find out what exactly the situation with the NYDFS was proved to be exactly one day, as the NYDFS announced Wednesday that it is fining PHH $28 million for what it calls “shoddy mortgage origination and servicing practices.”

In announcing the fine, the NYDFS provided a list of the violations that PHH committed, and it reads like a laundry list of some of the same practices that gave the mortgage business a bad name before, during and after the financial crisis.

According to the NYDFS, a series of investigations uncovered “persistent shortcomings” in PHH’s mortgage origination and servicing practices, including discrepancies in how mortgage foreclosures were documented and processed.

Read on.

PHH wins landmark victory: CFPB ruled unconstitutional

What was once unthinkable actually happened, as the United States Court of Appeals for the District of Columbia Circuit handed an earth-shattering victory to PHH, declaring the Consumer Financial Protection Bureau’s leadership structure unconstitutional and vacating a $103 million fine against PHH.

PHH, a mortgage lender, made national headlines when it challenged CFPB Director Richard Cordray’s $103 million increase to a $6 million fine initially levied against PHH for allegedly illegally referring consumers to mortgage insurers in exchange for kickbacks.

Read on.

PHH takes another hit as BofA Merrill Lynch pulls mortgage servicing portfolio

It only took a little more than six months for Bank of America Merrill Lynch to decide to pull the rest of its mortgage servicing business from PHH Mortgage Corporation, marking another devastating blow for the company.

PHH Mortgage, a wholly-owned subsidiary of PHH Corp., announced in an 8-K filingwith the Securities and Exchange Commission that it received written notice from Bank of America that it is terminating its agreement with PHH, meaning the company will no longer provide private label origination services on behalf of Merrill Lynch, effective March 31, 2017.

Read on.

Layoffs at PHH: HSBC doesn’t plan to continue using PHH as subservicer

Housingwire:

Late last week, PHH announced that it recently received notice from HSBC Bank that it plans to sell the mortgage servicing rights on approximately 139,000 mortgage loans currently subserviced by PHH to an unknown buyer.

And worse for PHH, HSBC informed the company that the purchaser of the mortgage servicing rights does not plan to continue using PHH as a subservicer.

According to a report from Buffalo Business First, HSBC’s decision will lead to PHH laying off a number of employees from its Amherst location.

Buffalo Business First reported that the number of job cuts is currently unknown, but stated that the company has 300 employees currently at its Amherst location.