Five Key Takeaways From The D.C. Circuit's PHH Decision

The legal challenge by PHH Corp. (PHH) to a June 4, 2015, decision by the director of the Consumer Financial Protection Bureau (Bureau) in connection with the Bureau's enforcement proceeding against PHH has captivated the real estate settlement services industry. The attention is justified. Director Cordray's ruling against PHH, which was the first appeal from a Bureau administrative trial, was shocking. The director had increased PHH's disgorgement penalty 17-fold (from a $6.4 million penalty initially awarded to a massive $109 million), and in doing so trampled established rules and precedents for interpreting Section 8 of the Real Estate Settlement Procedures Act (RESPA). The director also declared that the Bureau is not subject to any statute of limitations if it decides to prosecute claims in its own administrative forum.