March 17, 2017

Justice files amicus brief in support of PHH

The Justice Department on Friday filed an amicus brief for the federal government in support of PHH Corp.'s contention that the CFBP's structure is unconstitutional.

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

Last month, 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.

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

NAFCU will continue to monitor developments in this litigation.