The Consumer Financial Protection Bureau (CFPB) on Wednesday sued mortgage giant PHH Corp. and its affiliates for allegedly collecting "hundreds of millions of dollars" in illegal mortgage insurance kickbacks starting as early as 1995, the National Law Journal reported yesterday. In an administrative suit, the agency alleged that consumers ended up paying inflated mortgage insurance premiums because of the scheme. It seeks a civil fine, a permanent injunction and victim restitution. The publicly traded company, based in New Jersey, closed $55.6 billion in mortgage financing during 2012 and services nearly 1.1 million loans, according to its website. The suit is the latest in a series brought by the consumer agency alleging violations of the Real Estate Settlements Procedures Act. Earlier this month, for example, Fidelity Financial Mortgage Corp. agreed to pay $81,000 for funneling allegedly illegal kickbacks to a bank in exchange for real estate referrals. In October, the agency sued law firm Borders & Borders in Louisville federal court for allegedly paying kickbacks for real estate settlement referrals through a network of shell companies. That case is pending.
