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EJF Capital increased its stake in PHH as the hedge fund attempts to add two directors to its board.
The New York-based banking giant said it is exiting the servicing industry by 2018, a move that comes amid a pullback by many of its peers since the financial crisis.
Under a recent ruling, the director of the Consumer Financial Protection Bureau would serve at the president's pleasure, limiting the agency's autonomy. Republicans want even more changes.