The Consumer Financial Protection Bureau has won a round in a contentious lawsuit that was previously filed by PHH Corp.
PHH’s lawsuit sought to rein in the CFPB’s June 2015 order requiring it to pay $109 million over kickbacks received for reinsurance.
The CFPB’s order reversed
a November 2014 recommendation by an administrative law judge calling for PHH to disgorge over $6 million.
The regulator claims PHH violated the Real Estate Settlement Procedures Act.
In October 2016, a three-judge panel at the U.S. Court of Appeals for the District of Columbia ruled in favor of PHH.
So the
bureau filed a petition appealing the court’s initial decision.
On Thursday, the appeals court granted the CFPB’s petition. It also
ordered that the October ruling be vacated.
In addition, the appeals court ordered that oral arguments will be heard May 24.
Joseph Lynyak III, a partner at Dorsey & Whitney LLP, weighed in on the decision.
“The time frame for submitting briefs (late May) suggests strongly that a decision would not be issued until late summer at best,” Lynyak said in a written statement. “Because the order vacates the existing decision, the clear statutory determinations completely favorable to PHH are now on hold, but the language of the order indicates that the factual determinations by the three-judge panel are not the focus of concern of the entire panel.”
National Association of Federally-Insured Credit Unions President and Chief Executive Officer Dan Berger issued a statement saying the the trade group will continue to monitor developments in the case.
