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NAFCU Director of Regulatory Affairs Alexander Monterrubio monitored oral arguments Wednesday in the PHH Corp. lawsuit against the CFPB at the U.S. Court of Appeals for the D.C. Circuit. With arguments concluded, the next step is for the court to rule, which could take several months.

The en banc hearing consisted of eleven judges. The arguments primarily focused on the constitutionality of the CFPB director, who is only removable "for cause." The court only briefly discussed the bureau's interpretation of the Real Estate Settlement Procedures Act, another part of the litigation.

"The D.C. Circuit was most interested in the implication of whether or not a removable 'for cause' provision makes the CFPB director sufficiently accountable and whether the current bureau current structure limits presidential power," said Monterrubio. "Some of the judges' comments seemed to suggest that the Court of Appeals may not be the proper forum to resolve these questions of law, which means we could be heading down a path toward a review by the Supreme Court."

In February, the court granted the bureau's petition for a full court rehearing of the case, after the court's initial ruling in October 2016 found the bureau's single-director structure unconstitutional.

In March, NAFCU and 12 other trade associations filed an amicus brief in support of PHH's underlying challenge to the CFPB's interpretation of RESPA.

NAFCU will continue to monitor the suit for its impact on credit unions.