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The PHH Corporation is an American
financial services Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, ...
corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
headquartered in Mount Laurel,
New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delawa ...
which provides mortgage services to some of the world's largest
financial services Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, ...
firms. PHH is the biggest U.S. outsourcer of home loans, processes and originates mortgages on behalf of small banks and some of the world's largest financial firms, including
Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...
and
HSBC HSBC Holdings plc is a British multinational universal bank and financial services holding company. It is the largest bank in Europe by total assets ahead of BNP Paribas, with US$2.953 trillion as of December 2021. In 2021, HSBC had $10.8 tr ...
Holdings Plc. On October 4, 2018 Ocwen Financial completed its acquisition of PHH Corporation and PHH is now a wholly owned subsidiary of Ocwen Financial Corp.


History

PHH was founded by Duane Peterson, Harley Howell and Richard Heather in 1946 in Mount Laurel,
New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delawa ...
and incorporated in 1953 as a Maryland corporation providing mortgage services, employee
relocation services Relocation services, employee relocation, military Permanent Change of Station (PCS) or workforce mobility include a range of internal business processes to transfer employees, their families, and/or entire departments of a business to a new loc ...
,
fleet management Fleet management is the management of: * Commercial motor vehicles such as cars, vans, trucks, specialist vehicles (such as mobile construction machinery), forklifts, and trailers * Private vehicles used for work purposes (the 'grey fleet') * Avi ...
services. Between April 30, 1997 and February 1, 2005, PHH was a wholly owned subsidiary of
Cendant Cendant Corporation was an American provider of business and consumer services, primarily within the real estate and travel industries. In 2005 and 2006, it broke up and spun off or sold its constituent businesses. Although it was based in New Y ...
Corporation (now known as Avis Budget Group) and its predecessors that provided mortgage banking services, facilitated employee relocations and provided vehicle fleet management and fuel card services. On February 1, 2005, as a result of a Cendant
spin-off Spin-off may refer to: *Spin-off (media), a media work derived from an existing work *Corporate spin-off, a type of corporate action that forms a new company or entity * Government spin-off, civilian goods which are the result of military or gov ...
, PHH began operating as an independent, publicly traded company under the stock symbol . On July 1, 2014, all issued and outstanding equity interests in their
Fleet Management Fleet management is the management of: * Commercial motor vehicles such as cars, vans, trucks, specialist vehicles (such as mobile construction machinery), forklifts, and trailers * Private vehicles used for work purposes (the 'grey fleet') * Avi ...
Services business and related fleet entities were sold to Element Financial Corporation, for a purchase price of $1.4 billion. The Fleet business was focused on providing commercial fleet management services to corporate clients and government agencies throughout the U.S. and Canada which included fleet leasing services and additional services and products for vehicle maintenance, accident management, driver safety training and fuel cards. The transaction resulted in a $241 million net gain on sale reported on the 2014 Annual Report. In November 2014, an
Administrative law judge An administrative law judge (ALJ) in the United States is a judge and trier of fact who both presides over trials and adjudicates claims or disputes involving administrative law. ALJs can administer oaths, take testimony, rule on questions of evi ...
decided that PHH had paid illegal kickbacks in violation of the
Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act (RESPA) was a law passed by the United States Congress in 1974 and codified as Title 12, Chapter 27 of the United States Code, . The main objective was to protect homeowners by assisting them in becoming b ...
by referring consumers to mortgage insurers who would pay a reinsurance premium to a PHH subsidiary, fining the company $6.5 million. PHH appealed to
Consumer Financial Protection Bureau The Consumer Financial Protection Bureau (CFPB) is an agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, payday lenders, mo ...
Director
Richard Cordray Richard Adams Cordray (born May 3, 1959) is an American lawyer and politician serving as the COO of Federal Student Aid in the United States Department of Education. He served as the first director of the Consumer Financial Protection Bureau (CFP ...
, who on June 4, 2015, adopted a new reinterpretation broadening RESPA, made a new finding that the
statute of limitations A statute of limitations, known in civil law systems as a prescriptive period, is a law passed by a legislative body to set the maximum time after an event within which legal proceedings may be initiated. ("Time for commencing proceedings") In ...
did not apply to the CFPB, and ordered PHH to disgorge $109 million. The
United States Court of Appeals for the District of Columbia Circuit The United States Court of Appeals for the District of Columbia Circuit (in case citations, D.C. Cir.) is one of the thirteen United States Courts of Appeals. It has the smallest geographical jurisdiction of any of the U.S. federal appellate cou ...
stayed Director Cordray's decision in August, 2015. On October 11, 2016, a panel of the circuit court vacated and remanded Director Cordray's decision, writing that “The CFPB’s order violated bedrock principles of due process”. Circuit Judge
Brett Kavanaugh Brett Michael Kavanaugh ( ; born February 12, 1965) is an American lawyer and jurist serving as an associate justice of the Supreme Court of the United States. He was nominated by President Donald Trump on July 9, 2018, and has served since ...
, joined by Senior Circuit Judge
A. Raymond Randolph Arthur Raymond Randolph (born November 1, 1943) is a Senior United States circuit judge of the United States Court of Appeals for the District of Columbia Circuit. He was appointed to the Court in 1990 and assumed senior status on November 1, 200 ...
, made the additional finding that the unusual statute making the CFPB Director removable only for cause was unconstitutional, and the
President of the United States The president of the United States (POTUS) is the head of state and head of government of the United States of America. The president directs the executive branch of the federal government and is the commander-in-chief of the United Stat ...
can remove the Director at will, over a partial dissent by Circuit Judge
Karen L. Henderson Karen LeCraft Henderson (born July 11, 1944) is a United States circuit judge of the United States Court of Appeals for the District of Columbia Circuit and a former United States District Judge of the United States District Court for the Distric ...
. On January 31, 2018, the ''
en banc In law, an en banc session (; French for "in bench"; also known as ''in banc'', ''in banco'' or ''in bank'') is a session in which a case is heard before all the judges of a court (before the entire bench) rather than by one judge or a smaller ...
'' D.C. Circuit overturned the panel's constitutional decision and upheld the removal protections for the CFPB director. As of October 4, 2018 the PHH Corporation was acquired by Ocwen Financial Corp for approximately $360 million. The company stock as listed on the
NYSE The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is by far the List of stock exchanges, world's largest s ...
was delisted and is now traded under Ocwen . PHH now operates as a wholly owned subsidiary of Ocwen, retaining the former PHH CEO Glen A. Messina as President and Chief Executive Officer of Ocwen and transitioned its employees from PHH to Ocwen.


See also

* ''
Lightfoot v. Cendant Mortgage Corp. ''Lightfoot v. Cendant Mortgage Corp.'', 580 U.S. ___ (2017), was a Supreme Court of the United States, United States Supreme Court case that clarified whether Fannie Mae can be sued in State court (United States), state courts. In a unanimous op ...
''


References


External links


Company websiteMortgage Servicing Portal
{{DEFAULTSORT:Phh Corporation Companies listed on the New York Stock Exchange Companies based in Burlington County, New Jersey Financial services companies established in 1946 Financial services companies based in New Jersey Mount Laurel, New Jersey 1946 establishments in New Jersey