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PHH hopes appeals court win clarifies federal regs for mortgage biz

PHHCorp. hopes an appellate court's decision to overturn a Consumer Financial ProtectionBureau's penalty will clarify the mortgage industry's reliance on long-standingregulations.

The CFPB had ordered the company to $109 million in premiumscollected by the company's former reinsurance business — payments the agencydeemed to be illegal kickbacks.

PHH appealed the order, and the U.S. Court of Appeals forthe District of Columbia sided with the company and sent the case back to alower court on constitutional grounds related to the structure of the CFPB'sauthority.

"We will continue to present the facts and evidence to demonstratethat we complied with [regulations]," PHH added in a statement.