The Consumer Financial Protection Bureau issued a press release on January 29, 2014, announcing that it has initiated an administrative proceeding against PHH Corporation and its affiliates arising from an alleged mortgage insurance “kickback” scheme. CFPB claims that when PHH initiated mortgages requiring mortgage insurance (typically, where the buyer cannot put up a 20 percent downpayment), it referred the consumers to mortgage insurers with which PHH partnered, in exchange for the insurers then purchasing reinsurance from PHH’s subsidiaries. The CFPB claims this violated the Real Estate Settlement Procedures Act and unfairly increased the cost of borrowing for consumers. The CFPB’s Notice of Charges will be available on the CFPB website after February 12, 2014.