Fall 2016 Federal Highlights

Big Win for PHH in Case Against CFPB

The U.S. Court of Appeals for the DC Circuit has released its opinion in PHH’s case against the CFPB, and it’s a resounding win for PHH and the industry. In its 110-page opinion, the Court vacated the CFPB’s order against PHH and also issued favorable holdings on the following significant issues:

• The 3-year statute of limitations under RESPA applies to all CFPB enforcement actions to enforce Section 8, whether brought in court or administratively

• Section 8 of RESPA allows captive reinsurance arrangements so long as the amount paid by the mortgage insurer for the reinsurance does not exceed the reasonable market value of the reinsurance.

The court also found the structure of the Bureau to be unconstitutional, but “fixed” this issue by clarifying that the Director may be removed by the President at will.

The CFPB has challenged the ruling regarding the constitutionality of its structure and petitioned for a review of this issue by the full D.C. Circuit Court of Appeals.

CPFB Revisions to Servicing Rules under Regulation X and Regulation Z

The CFPB issued final rules revising certain servicing requirements under Regulation X and Regulation Z. Specifically, the final rules address successors in interest, the definition of “delinquency,” requests for ownership information, force-placed insurance notices, early intervention requirements, loss mitigation, and periodic statements. The final rules generally are effective 12 months after publication of the rules in the Federal Register. Certain provisions are effective 18 months after publication.

Posted in Federal Highlights, Newsletters


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