PHH Corporation

PHH says workforce in South Jersey headquarters will be reduced by ...

src: media.bizj.us

PHH Corporation is an American financial services company headquartered in Mount Laurel, New Jersey that provides mortgage services to some of the largest financial services companies in the world. PHH is the largest US home, process, and mortgage lender on behalf of small banks and some of the largest financial companies in the world, including Morgan Stanley and HSBC Holdings Plc.

Video PHH Corporation

History

PHH was founded by Duane Peterson, Harley Howell and Richard Heather in 1946 in Mount Laurel, New Jersey and founded in 1953 as a Maryland company providing mortgage services, employee relocation services, fleet management services.

Between April 30, 1997 and February 1, 2005 PHH is a wholly-owned subsidiary of Cendant Corporation (now known as Avis Budget Group) and its predecessor providing mortgage banking services, facilitating employee relocation and providing vehicle fleet management and fuel card services.

On February 1, 2005, as a result of the Cendant spin-off, PHH began operating as an independent company traded under the NYSE stock symbol: PHH.

On July 1, 2014, all issued and outstanding equity interests in their Fleet Management Service business and associated fleet entities were sold to Element Financial Corporation, for a purchase price of $ 1.4 billion. Fleet Business focuses on providing commercial fleet management services to corporate clients and government agencies across the US and Canada that include fleet rental services and additional services and products for vehicle maintenance, accident management, driver safety training and fuel cards. The transaction generates a net profit of $ 241 million reported in the 2014 Annual Report.

In November 2014, an Administrative law judge ruled that PHH had paid an illegal bribe in violation of the Real Housing Settlement Procedure Act by referring the consumer to a mortgage lender who would pay reinsurance premium to a PHH subsidiary, with a fine of $ 6.5 million. PHH appealed to the Director of the Consumer Financial Protection Bureau Richard Cordray, who on 4 June 2015 adopted a new reinterpretation extending REPA, making new findings that the statute of limitations does not apply to CFPB, and ordered PHH to spend $ 109 million.

The United States Court of Appeal for the Circuit District of Columbia endured the decision of Director Cordray in August 2015. On October 11, 2016, the circuit court vacated and restored the decision of Director Cordray, writing that "The CFPB order violates the basic principles of legal proceedings". Circuit Justice Brett Kavanaugh, joining Senior Circuit Judge A. Raymond Randolph, made the additional finding that the unusual law makes the CFPB Director released only for unconstitutional reasons, and the President of the United States can remove the Director at will, through partial disagreements by Circuit Judge Karen L. Henderson.