Consumer Bureau Gets Busy With Mortgage Probe
Wall Street Journal
January 11, 2012
Randall, Maya Jackson
In its first publicly disclosed investigation, the Consumer Financial Protection
Bureau is scrutinizing PHH Corp.'s mortgage insurance practices. Earlier in
January, the regulator notified the mortgage lender that it had launched a probe
to assess whether the firm was adhering to federal law banning kickbacks in
realty transactions. The CFPB's newly appointed director, Richard Cordray,
recently warned the financial industry that it had a number of open
investigations -- some of which may "require enforcement actions to stop illegal
behavior." The agency is investigating whether PHH influenced borrowers to use
specific mortgage insurers with which it shared a business relationship.
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