Newsroom
FHFA won't defend structure's constitutionality
The Federal Housing Finance Agency (FHFA) won't defend the constitutionality of its structure, according to a brief filed this week in the U.S. Court of Appeals for the Fifth Circuit.
A three-judge panel for the Fifth Circuit last year determined that the agency "is unconstitutionally structured and violates the separation of powers." However, the full court is now rehearing the case.
Although the supplemental filing indicates that the FHFA believes "it is unnecessary for this Court to reach the constitutionality of the … for-cause removal provision" in this specific case, if the court does determine that the issue must be resolved, "FHFA will not defend the constitutionality of [the] for-cause removal provision and agrees … that the provision infringes on the President's control of executive authority."
On Monday, the Supreme Court declined to hear a lawsuit challenging the structure of the Bureau of Consumer Financial Protection, which is also under a single director, only removable for cause. Last year, the U.S. Court of Appeals for the D.C. Circuit sitting en banc upheld the bureau's constitutionality in another case brought by PHH Corp. However, there continues to be challenges in other courts: the Fifth Circuit is tentatively scheduled to hear oral arguments March 11 for a challenge to the bureau's constitutionality brought by defendants accused by the bureau in 2016 of engaging in unfair payday lending conduct, and a federal judge in New York – months after the D.C. Circuit's decision – ruled the bureau's structure unconstitutional.
NAFCU has long advocated for a commission structure at the bureau to ensure long term continuity and stability in its policymaking.
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.