The First CFPB Administrative Appeal: RESPA, Kickbacks, and the Danger of De Novo Review

In Brief

• The CFPB’s surprising decision in In the Matter of PHH Corp., et al. provides some interesting insight for future CFPB enforcement proceedings and administrative appeals.
• Among the take-aways of the decision are that appealing CFPB administrative enforcement actions carries considerable risk, RESPA may prohibit more than originally thought, and enforcement will be different under the CFPB.
• PHH has already appealed the director’s decision and will surely mount a constitutional challenge to the concentration of power in CFPB and the director’s position.