Newsroom

March 31, 2017

CFPB files brief in PHH case

The CFPB defended the constitutionality of its single-director structure in a legal brief filed Friday in the PHH Corp. lawsuit.

In the brief, the bureau highlighted similarities between its structure and that of other independent agencies run by single directors.

In February, the U.S. Court of Appeals for the D.C. Circuit granted the CFPB's petition for a full court rehearing of the case. The court's October 2016 initial ruling found the CFPB's single director structure unconstitutional. Oral arguments before the full court will be heard May 24.

Also on Friday, a group of 40 current and former Democratic lawmakers, including House Financial Services Committee Ranking Member Maxine Waters, D-Calif., filed an amicus brief in support of the CFPB in the case. The group also included Sen. Elizabeth Warren, D-Mass., former Sen. Chris Dodd, D-Conn., former Sen. Harry Reid, D-Nev., and former Rep. Barney Frank, D-Mass. Dodd and Frank are the authors of the Dodd-Frank Act, which created the bureau and place consumer financial protections under its purview.

In March, the Justice Department filed an amicus brief for the federal government in support of PHH's contention that the CFBP's structure is unconstitutional.

The Justice Department's brief did not take a position on PHH's underlying challenge to the bureau's interpretation of the Real Estate Settlement Procedures Act. Earlier last month, NAFCU and 12 other trade associations filed an amicus brief in support of PHH's case with regard to RESPA.

In February, a three-judge panel denied motions from Democratic lawmakers and state attorneys general to intervene in the case.