In a stunning victory, the United States Court of Appeals for the District of Columbia Circuit ruled the structure of the CFPB unconstitutional and vacated a $103 million fine against PHH on Tuesday.
PHH had had a $6.4 million fine levied against it by Administrative Law Judge Cameron Elliot. However, CFPB Director Richard Cordray increased the fine to $103 million, saying that PHH violated the Real Estate Settlement Procedures Act (RESPA) every time it accepted a kickback payment on or before July 21, 2008 – going far beyond Elliot’s ruling, which had limited PHH’s violations to kickbacks that were connected with loans that closed on or after July 21, 2008.
PHH challenged Cordray’s authority to levy the additional fine and the constitutionality of the CFPB, and after much deliberation, the court agreed with PHH on all counts.
Read the full story in HousingWire.