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» VISIT US ONLINE @ DSNEWS.COM 7 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S May 2015's total of 69,286 bankruptcy filings represents a decline of nearly 21 percent year-over-year from May 2014's total of 85,711 filings, according to AACER bankruptcy data reported by Epiq Systems. Foreclosure starts declined by 22 percent month-over-month (and 6.7 percent year-over-year, in April 2015, down to about 73,500, according to Black Knight Financial Services. CFPB REJECTS FIRST-EVER APPEAL, FINES PHH CORP $109 MILLION PAGE 22 INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM Source: AACER bankruptcy data reported by Epiq Systems (as of May 2015) STATES WITH THE MOST BANKRUPTCY FILINGS IN 2015 1 California 35,965 2 Illinois 24,520 3 Florida 24,131 4 Georgia 19,872 5 Ohio 15,944 6 Tennessee 14,726 7 Michigan 14,433 8 Texas 14,261 9 New York 12,803 10 Indiana 11,502 State Total (Through May) Ranking STATES WITH THE FEWEST BANKRUPTCY FILINGS IN 2015 1 Alaska 153 2 North Dakota 232 3 Vermont 261 4 District of Columbia 294 5 Wyoming 378 6 South Dakota 487 7 Montana 501 8 Hawaii 673 9 Maine 768 10 New Hampshire 894 Ranking State Total (Through May) Consumer Financial Protection Bureau (CFPB) director Richard Cordray announced his decision early last month in the first-ever appeal of an administrative enforcement proceeding by the Bureau. Cordray ruled that New Jersey-based mortgage lender PHH Corp. accepted kickbacks for illegally referring consumers to mortgage insurers. In addition to Cordray's ruling, a final order was issued that prohibits the lender from violating the law and requires it to pay $109 million to the CFPB. Administrative Law Judge Cameron Eliot stated in a Recommended Decision in November 2014 that PHH took kickbacks in the form of reinsurance premiums paid to a PHH subsidiary by mortgage insurers, a violation of the Real Estate Settlement Procedures Act (RESPA). e mortgage loans in question closed on or after July 21, 2008, according to CFPB. PHH is alleged to have begun accepting the kickback payments as early as 1995. Whereas Eliot's decision stated that PHH's RESPA violations were connected to loans closing on or after July 21, 2008, Cordray went beyond that ruling by saying that PHH was in violation of RESPA for every kickback payment the company accepted after that date. e Bureau first announced the administrative proceeding against PHH in January 2014 seeking a civil fine, a permanent injunction to prevent future violations, and victim restitution. e $109 million penalty handed down by Cordray is the amount of reinsurance premiums PHH received on or after July 21, 2008, according to the CFPB. In addition to the fine, Cordray's final order prohibits PHH from violating the RESPA provision forbidding kickbacks and also prohibits the company from referring consumers to a real estate services provider if the provider has agreed to make any purchase from PHH as a result of that referral, the CFPB said. Cordray denied the appeal filed by PHH and its affiliates and granted in part and denied in part an appeal filed by the Bureau's enforcement counsel, according to the CFPB. In response to Cordray's announcement of the penalties, PHH issued the following statement: "We strongly disagree with the decision of the director. We believe this decision is inconsistent with the facts and is not in accord with well-settled legal principles and interpretations. We continue to believe we complied with RESPA and other laws applicable to our mortgage reinsurance activities. e company did not provide reinsurance on loans originated after 2009. We intend to file an appeal to the United States Court of Appeals. While there can be no assurances as to the final outcome of any such appeal, we believe our appeal will be successful and, as a result, are not adjusting our previously issued earnings guidance." EXECUTIVE VICE PRESIDENT, HEAD OF CUSTOMER EXCELLENCE AT WELLS FARGO FIVE MINUTES WITH Mary Coffin

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