WASHINGTON—CUNA and NAFCU have joined 11 other trade organizations in filing an amicus brief in a court case that questions the CFPB’s structure.
As CUToday.info previously reported, the case, PHH v. CFPB, gained attention last year due to an October ruling from the D.C. Court of Appeals calling into question the CFPB’s constitutionality. It also struck language from the Dodd-Frank Act saying the CFPB director can only be removed with cause.
The U.S. Court of Appeals for the D.C. Circuit granted the CFPB’s petition for an “en banc” re-hearing of the case, meaning it will be heard before all judges of the court.
CUNA Chief Advocacy Officer Ryan Donovan said the joint trades amicus brief focuses on the non-constitutional issues in the case. It applauds the court for the previous decision it rendered on the Real Estate Settlement Procedures Act (RESPA), statute of limitations and retroactivity issues and discusses the need for regulatory certainty and due process, noting that RESPA is one of the most important statutes that govern the mortgage industry.
NAFCU emphasized it will closely monitor developments in this litigation, noting that after the court’s initial ruling in October, NAFCU urged an immediate moratorium at the Bureau on any rulemakings not already implemented.
In addition to closely following PHH v. CFPB, CUNA said it is a strong supporter of changing the CFPB’s leadership structure to a five-person commission. The change is one of the primary goals of CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation.
The American Bankers Association and the Independent Community Bankers of America are among those joining in the brief.