Newsroom

The Justice Department is poised to side with the PHH Corp. in its case against the CFPB in a friend-of-the-court brief it plans to file before March 17, according to reports.

Last month, the U.S. Court of Appeals for the D.C. Circuit granted the CFPB's petition to reconsider the court's initial ruling that found its structure unconstitutional. Oral arguments will be heard May 24.

The American Banker, citing a filing by the Justice Department last week, noted that the department's actions appear to indicate that the White House "intends to resolve the fate of CFPB Director Richard Cordray through the courts rather than through an action by the president."

The bureau's response and amicus briefs in support of the CFPB are due March 31.

In its petition filed in November, the CFPB argued against the court's October decision that its structure is unconstitutional on grounds that it would interfere with Congress's ability to create independent agencies led by a single director. The CFPB pointed to other independent agencies, including the Social Security Administration, the Federal Housing Finance Agency and Office of Special Counsel, to help make its case.

After the court's initial ruling in October, NAFCU urged an immediate moratorium at the bureau on any rulemakings not already implemented.