Mortgage relief law firm to pay CFPB $39 million in settlement

On Wednesday, a Wisconsin federal judge approved a $39 million judgment against a now-defunct mortgage assistance relief law firm. The settlement resolves CFPB claims that The Mortgage Law Group LLP took advantage of struggling homeowners by tricking them into pay significant fee for loan modification assistance and other services that they never received. The [...]

By | 2017-06-24T15:40:46+00:00 June 23rd, 2017|0 Comments

TransUnion to pay $60M for FCRA violations

A California federal jury found Tuesday that TransUnion, one of the nation’s three largest credit reporting agencies, violated the Fair Credit Reporting Act (FCRA) when it incorrectly conflated a class of consumers with similarly named terrorists and criminals from a government watch list. The jury awarded statutory and punitive damages exceeding $60 million, the [...]

By | 2017-06-21T22:09:57+00:00 June 21st, 2017|0 Comments

Is surge in litigation taking its toll on CFPB?

On Wednesday, American Banker published an article taking a closer look at the recent rise in litigation at the CFPB. With the uncertain political climate and legal challenges that threaten to overhaul the Bureau's structure, funding, and day-to-day operations, more and more financial companies opted to push back against CFPB enforcement actions. According to the [...]

By | 2017-06-09T20:16:01+00:00 June 8th, 2017|0 Comments

The CFPB v. PHH: What about RESPA?

The legal battle between PHH and the CFPB focuses primarily on whether the CFPB is a constitutionally structured independent agency – a decision on that issue is sure to have widespread implications for the entire financial services industry. There is, however, another issue which also carries a tremendous amount of weight for a major [...]

By | 2017-06-06T20:47:22+00:00 June 6th, 2017|0 Comments

PHH filed its reply brief with the DC Circuit

On April 10, 2017, PHH filed its reply brief with the DC Circuit in the en banc rehearing of the PHH v. CFPB case. In its brief, PHH argues that if the Bureau’s single-director-removable-only-for-cause structure is constitutional, then there is essentially no limit to Congress’s authority to divest the President of all executive power. PHH [...]

By | 2017-04-12T07:48:16+00:00 April 12th, 2017|0 Comments

PHH v. CFPB – everything you need to know

When the Consumer Financial Protection Bureau (CFPB) filed its notice of charges against New Jersey-based mortgage lender, PHH Corp. in January 2014, there were few observers outside of the mortgage and real estate industries who paid much attention. Now, more than three years later, the legal battle has evolved into a constitutional challenge that the [...]

By | 2017-03-29T07:00:00+00:00 March 29th, 2017|0 Comments

DOJ brief argues that Trump can fire CFPB Director

Earlier this month, the DOJ filed an unopposed motion for leave to file an amicus brief which indicated that the Trump Administration might be switching sides in the legal battle, departing from the position that the DOJ took under President Obama. So it came as no surprise when the DOJ submitted its amicus brief in the [...]

By | 2017-03-20T07:05:06+00:00 March 20th, 2017|0 Comments

PHH files opening brief, asks court to eliminate CFPB

On March 10, 2017, PHH filed its opening brief with the DC Circuit and asked the court to “strike down the CFPB in its entirety.” Last month, the DC Circuit granted the CFPB’s petition for rehearing en banc following an October 2016 ruling by a three-judge panel court that declared the CFPB’s single-director-removable-only-for-cause structure unconstitutional. The [...]

By | 2017-03-13T07:30:50+00:00 March 13th, 2017|0 Comments